Bitmine Immersion (BMNR) 10-Q 15 Jul 24 2024 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	May 31, 2024	Jul. 10, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	May 31, 2024
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2024
Current Fiscal Year End Date	--08-31
Entity File Number	000-56220
Entity Registrant Name	BITMINE IMMERSION TECHNOLOGIES, INC.
Entity Central Index Key	0001829311
Entity Tax Identification Number	84-3986354
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	2030 Powers Ferry Road SE
Entity Address, Address Line Two	Suite 212
Entity Address, City or Town	Atlanta
Entity Address, State or Province	GA
Entity Address, Postal Zip Code	30339
City Area Code	404
Local Phone Number	816-8240
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		49,912,607

Condensed Balance Sheets

Condensed Balance Sheets - USD ($)	May 31, 2024	Aug. 31, 2023
Current assets:
Cash and cash equivalents	$ 281,004	$ 270,547
Prepaid expenses	778,703	105,000
Cryptocurrency	169,632	129,469
Notes receivable - short term	731,472	0
Notes receivable related party - short term	374,444	374,444
Total current assets	2,335,255	879,460
Notes receivable - long term	0	731,472
Notes receivable - related party long term	374,445	655,277
Investment in joint venture	808,407	987,429
Fixed assets, net	1,938,725	495,702
Fixed assets -not in service	2,709,697	4,453,466
Total assets	8,166,529	8,202,806
Current liabilities:
Accounts payable and accrued liabilities	559,145	74,904
Accrued interest - related party	257,293	97,460
Customer advances	703,500	0
Loans payable - related party	1,625,000	1,300,000
Deferred revenue - short term	86,193	86,193
Total current liabilities	3,231,131	1,558,557
Deferred revenue long term	322,239	386,884
Total liabilities	3,553,370	1,945,441
Commitments and contingencies
Stockholders' Equity:
Series A Preferred Stock, $0.0001 par value, 500,000 shares authorized, 453,966 and 453,966 shares issued and outstanding as of May 31, 2024 and August 31, 2023, respectively	45	45
Common stock, $0.0001 par value, 500,000,000 shares authorized; 49,912,607 and 49,665,649 shares issued and outstanding as of May 31, 2024 and August 31, 2023 respectively	4,991	4,967
Additional paid-in capital	12,018,122	11,183,720
Accumulated deficit	(7,409,999)	(4,931,367)
Total stockholders' equity	4,613,159	6,257,365
Total liabilities and equity	$ 8,166,529	$ 8,202,806

Condensed Balance Sheets (Paren

Condensed Balance Sheets (Parenthetical) - $ / shares	May 31, 2024	Aug. 31, 2023
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	49,912,607	49,665,649
Common stock, shares outstanding	49,912,607	49,665,649
Series A Preferred Stock [Member]
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	500,000	500,000
Preferred stock, shares issued	453,966	453,966
Preferred stock, shares outstanding	453,966	453,966

Condensed Statements of Operati

Condensed Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	May 31, 2024	May 31, 2023	May 31, 2024	May 31, 2023
Revenue from the sale of mining equipment	$ 20,471	$ 13,647	$ 210,662	$ 138,011
Revenue from hosting	16,762	0	38,743	0
Revenue from self-mining	1,187,759	128,479	2,378,507	261,921
Total revenue	1,224,992	142,126	2,627,913	399,932
Gross profit (loss)	221,687	69,734	649,391	113,608
Operating expenses:
General and administrative expenses	100,308	183,610	397,753	244,723
Depreciation	232,781	147,005	684,564	294,270
Professional fees	116,734	143,580	420,124	406,383
Related party compensation	349,584	110,712	1,053,733	350,536
Impairment of fixed assets	0	0	0	122,950
Realized gain from the sale of bitcoin	(43,183)	(5,659)	(119,774)	(18,420)
Impairment of cryptocurrency	0	0	0	3,523
Total operating expenses	756,224	579,248	2,436,401	1,403,965
Loss from operations	(534,537)	(509,515)	(1,787,010)	(1,290,357)
Other income (expense)
Interest expense	(56,563)	(28,622)	(210,262)	(55,641)
Loss on the extinguishment of debt	(133,915)	0	(355,123)	0
Loss on investment	(58,840)	0	(170,613)	0
Change in derivative liability	114,835	0	0	0
Other income	0	0	0	16,939
Interest income	14,793	14,433	44,376	27,284
Other income (expense), net	(119,690)	(14,189)	(691,622)	(11,418)
Net loss	$ (654,228)	$ (523,704)	$ (2,478,632)	$ (1,301,775)
Basic (loss) per common share	$ (0.01)	$ (0.01)	$ (0.05)	$ (0.03)
Diluted (loss) per common share	$ (0.01)	$ (0.01)	$ (0.05)	$ (0.03)
Weighted-average number of common shares outstanding, Basic	49,836,850	48,855,238	49,867,153	48,774,671
Weighted-average number of common shares outstanding, Diluted	49,836,850	48,855,238	49,867,153	48,774,671
Sale Of Mining Equipment [Member]
Cost of Revenue	$ 0	$ 0	$ 180,891	$ 44,580
Self Mining [Member]
Cost of Revenue	988,094	72,392	1,767,885	241,743
Hosting Services [Member]
Cost of Revenue	$ 15,211	$ 0	$ 29,746	$ 0

Condensed Statements of Changes

Condensed Statements of Changes in Stockholders' Equity (Unaudited) - USD ($)	Series A Preferred Stocks [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Beginning balance, value at Aug. 31, 2022	$ 45	$ 4,861	$ 9,865,865	$ (2,466,566)	$ 7,404,205
Beginning balance, shares at Aug. 31, 2022	453,966	48,606,915
Common stock issued for services -related party		$ 7	31,422		31,429
Common stock issued for services -related party, shares		71,429
Common stock issued for services		$ 10	43,990		44,000
Common shares issued for services, shares		100,000
Net loss				(470,665)	(470,665)
Ending balance, value at Nov. 30, 2022	$ 45	$ 4,878	9,941,277	(2,937,231)	7,008,969
Ending balance, shares at Nov. 30, 2022	453,966	48,778,344
Beginning balance, value at Aug. 31, 2022	$ 45	$ 4,861	9,865,865	(2,466,566)	7,404,205
Beginning balance, shares at Aug. 31, 2022	453,966	48,606,915
Net loss					(1,301,775)
Ending balance, value at May. 31, 2023	$ 45	$ 4,944	10,284,331	(3,768,342)	6,520,979
Ending balance, shares at May. 31, 2023	453,966	49,444,222
Beginning balance, value at Nov. 30, 2022	$ 45	$ 4,878	9,941,277	(2,937,231)	7,008,969
Beginning balance, shares at Nov. 30, 2022	453,966	48,778,344
Common stock issued for services -related party		$ 7	49,778		49,785
Common stock issued for services -related party, shares		70,423
Net loss				(307,407)	(307,407)
Ending balance, value at Feb. 28, 2023	$ 45	$ 4,885	9,991,055	(3,244,638)	6,751,348
Ending balance, shares at Feb. 28, 2023	453,966	48,848,767
Common stock issued for services -related party		$ 5	51,330		51,335
Common stock issued for services -related party, shares		45,455
Common stock issued for services		$ 55	241,945		242,000
Common shares issued for services, shares		550,000
Net loss				(523,704)	(523,704)
Ending balance, value at May. 31, 2023	$ 45	$ 4,944	10,284,331	(3,768,342)	6,520,979
Ending balance, shares at May. 31, 2023	453,966	49,444,222
Beginning balance, value at Aug. 31, 2023	$ 45	$ 4,967	11,183,720	(4,931,367)	6,257,365
Beginning balance, shares at Aug. 31, 2023	453,966	49,665,649
Stock based compensation -related parties		$ 8	277,458		277,466
Stock based compensation -related parties, shares		83,056
Net loss				(921,722)	(921,722)
Ending balance, value at Nov. 30, 2023	$ 45	$ 4,975	11,461,178	(5,853,089)	5,613,108
Ending balance, shares at Nov. 30, 2023	453,966	49,748,705
Beginning balance, value at Aug. 31, 2023	$ 45	$ 4,967	11,183,720	(4,931,367)	6,257,365
Beginning balance, shares at Aug. 31, 2023	453,966	49,665,649
Net loss					(2,478,632)
Ending balance, value at May. 31, 2024	$ 45	$ 4,991	12,018,122	(7,409,999)	4,613,159
Ending balance, shares at May. 31, 2024	453,966	49,912,607
Beginning balance, value at Nov. 30, 2023	$ 45	$ 4,975	11,461,178	(5,853,089)	5,613,108
Beginning balance, shares at Nov. 30, 2023	453,966	49,748,705
Stock based compensation -related parties		$ 7	277,458		277,465
Stock based compensation -related parties, shares		72,993
Net loss				(902,682)	(902,682)
Ending balance, value at Feb. 29, 2024	$ 45	$ 4,982	11,738,635	(6,755,771)	4,987,891
Ending balance, shares at Feb. 29, 2024	453,966	49,821,698
Stock based compensation -related party		$ 9	279,487		279,496
Stock based compensation -related party, shares		90,909
Net loss				(654,228)	(654,228)
Ending balance, value at May. 31, 2024	$ 45	$ 4,991	$ 12,018,122	$ (7,409,999)	$ 4,613,159
Ending balance, shares at May. 31, 2024	453,966	49,912,607

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	May 31, 2024	May 31, 2023
Cash flows from operating activities
Net loss	$ (2,478,632)	$ (1,301,775)
Stock based compensation	834,427	418,549
Depreciation	684,564	294,270
Loss on the sale of equipment	31,641	0
Loss on investment	170,613	0
Change in balance sheet accounts
Impairment of fixed assets	0	122,950
Cryptocurrencies	(379,688)	(39,792)
Notes receivable	280,832	122,591
Prepaid expenses	(673,703)	(100,000)
Accounts payable and accrued expenses	484,241	(32,032)
Customer advances	703,500	0
Deferred revenue	(64,645)	16,573
Accrued interest - related party	159,833	55,641
Net cash (used in) operating activities	(247,017)	(443,025)
Cash flows from investing activities
Return of capital on joint venture	8,408	0
Purchase of fixed assets	(75,934)	(731,100)
Net cash (used in) investing activities	(67,526)	(731,100)
Cash flows from financing activities:
Related party loans	325,000	1,300,000
Net cash provided by financing activities	325,000	1,300,000
Net increase in cash and cash equivalents	10,457	125,875
Cash and cash equivalents at beginning of period	270,547	392,550
Cash and cash equivalents at end of period	281,004	518,425
Supplemental disclosure of non-cash financing activity
Proceeds received from Bitcoin loan	577,934	0
Repayment of bitcoin loan in bitcoin	577,934	0
Purchase of equipment with bitcoin	339,525	0
Sale of fixed assets for note receivable	0	613,514
Property contributed to joint venture	$ 0	$ 987,429

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($)	3 Months Ended						9 Months Ended
	May 31, 2024	Feb. 29, 2024	Nov. 30, 2023	May 31, 2023	Feb. 28, 2023	Nov. 30, 2022	May 31, 2024	May 31, 2023
Pay vs Performance Disclosure [Table]
Net Income (Loss)	$ (654,228)	$ (902,682)	$ (921,722)	$ (523,704)	$ (307,407)	$ (470,665)	$ (2,478,632)	$ (1,301,775)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	May 31, 2024
Insider Trading Arrangements [Line Items]
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

BASIS OF PRESENTATION AND SUMMA

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT POLICIES	9 Months Ended
	May 31, 2024
Accounting Policies [Abstract]
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 fiscal year ended August 31, 2022, the Company began implementing its business plan by generating revenue from the mining of Bitcoin digital currency, hosting a third party Bitcoin miner 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 condensed 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 condensed 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 condensed 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, 2024, are not necessarily indicative of the results that may be expected for the year ending August 31, 2024. Management’s Representation of Interim Condensed 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 condensed financial statements. Certain information and footnote disclosures normally included in condensed 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 condensed 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 condensed financial statements. The most significant estimates relate to the calculation of stock-based compensation, calculation of the Company’s derivative liability, useful lives and impairment of fixed assets, 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 condensed 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. There have been no material changes to the Company’s accounting estimates since the Company’s condensed financial statements for the fiscal year ended August 31, 2023. Segment Reporting The Company operates in one segment - the cryptocurrency mining industry. In accordance with the “Segment Reporting” Topic of the ASC, the Company’s chief operating decision maker has been identified as the Chief Executive Officer and President, who reviews operating results to make decisions about allocating resources and assessing performance for the entire Company. All material Company operations qualify for aggregation due to their similar customer base and similarities in economic characteristics, nature of products and services, and procurement, manufacturing and distribution processes. 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 recognizes revenue under ASC 606, Revenue from Contracts with Customers. The core principle of the revenue standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The following five steps are applied to achieve that core principle: · Step 1: Identify the contract with the customer; · Step 2: Identify the performance obligations in the contract; · Step 3: Determine the transaction price; · Step 4: Allocate the transaction price to the performance obligations in the contract; and · Step 5: Recognize revenue when the Company satisfies a performance obligation. Step 1: Step 2 · The customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer (i.e., the good or service is capable of being distinct); and · The entity’s promise to transfer the good or service to the customer is separately identifiable from other promises in the contract (i.e., the promise to transfer the good or service is distinct within the context of the contract). Based on these criteria, the Company has a single performance obligation in providing hash calculation services (i.e., hashrate) to the mining pool operator (i.e., customer). The performance obligation of hash calculation services is fulfilled daily over-time, as opposed to a point in time, because the Company provides the hashrate throughout the day and the customer simultaneously obtains control of it and uses the asset to produce bitcoin. The Company has full control of the mining equipment utilized in the mining pool and if the Company determines it will increase or decrease the processing power of its machines and/or fleet (i.e., for repairs or when power costs are excessive) the hash calculation services provided to the customer will be reduced. Step 3 The transaction consideration the Company earns is all variable since it is dependent on the daily hash calculation services provided by the Company, as well as other factors outside the control of the Company, such as the difficulty index of the bitcoin network. The Company’s bitcoins earned through the contractual payout formula is not known until the Company’s computational hashrate contributed over the daily measurement period is fulfilled over-time daily between midnight-to-midnight UTC time. The Company’s expected amount of the global network transaction fee rewards earned are calculated at the end of each transactional day (midnight to midnight UTC time). There are no other forms of variable considerations, such as discounts, rebates, refunds, credits, price concessions, incentives, performance bonuses, penalties, or other similar items. The Company fully constrains all variable consideration as a result of ASC 606-10-32-11 and 12 because the amount of consideration is highly susceptible to factors outside of our control as defined by the Company’s customer’s payout methodology. The variable consideration is constrained until the Company receives confirmation of the amount, usually via settlement of the fractional share of block reward and transaction fee in the Company’s digital wallet (i.e., at that point, the variability is resolved and there is no longer the reasonable possibility of significant reversal of revenue). Before settlement occurs, estimation of the variable consideration to which the Company is entitled, which depends on inputs unknowable to the Company, carries the risk of a significant revenue reversal from mis-estimation. Settlement of consideration typically occurs within 24 hours after the end of each day. Step 4 Step 5 In exchange for providing hash calculation services, the Company is entitled to the expected bitcoin awards earned over the measurement period, plus the expected global transaction fee rewards for the respective measurement period, less net digital asset fees due to the mining pool operator over the measurement period. The transaction consideration the Company receives is non-cash consideration, in the form of bitcoin. Prior to March 1, 2024, the Company measured the bitcoin at the closing U.S. dollar spot rate at the end of the date earned (midnight UTC). As of March 1, 2024, the Company began measuring the bitcoin at the opening U.S. dollar spot rate at the beginning of the date earned (midnight UTC). The change in method of calculating revenues from bitcoin mining did not result in material change in the revenues reported. There are no deferred revenues or other liability obligations recorded by the Company since there are no payments in advance of the performance. At the end of the 24 hour “midnight-to-midnight” period, there are no remaining performance obligations. During the nine months ending May 31, 2024, the Company utilized one mining pool for its self-mining operations, which charges 0.3% of the bitcoin payable to the Company as a pool management fee. During the three and nine months ending May 31, 2024, the Company generated $1,187,759 and $2,378,507 respectively, in revenues from mining cryptocurrency. Revenues from Hosting The Company provides energized space to customers who locate their equipment within the Company’s co-hosting facility. The equipment generating the hosting revenue is owned by the customer. The Company gives hosting customers the option of having all mining proceeds paid into a cold wallet address in the Company’s name, which case the Company pays the hosting client its share of mining awards on a daily basis, or having all mining awards sent to an account of the customer, in which case the Company bills the customer monthly for any hosting fee that is contingent on the amount of the client’s award. All performance obligations are achieved simultaneously by providing the hosting environment for the customers’ operations. Hosting revenues consist of amounts billed in U.S. dollars for electricity and other fees, and a percentage of cryptocurrency generated by the client’s hosting activities. With regard to hosting revenues that are billed in U.S. dollars, revenues are recorded at the time of invoicing. With regard to hosting revenues that are based on a percentage of cryptocurrency generated by the customer, revenues are recorded based on the Company’s share of cryptocurrency received from the mining pool on the date of receipt or invoicing. During the three and nine months ending May 31, 2024, the Company generated $ 16,762 38,743 Revenues from the sale of mining equipment The Company records revenue from the resale of mining equipment it has purchased. Revenue for the sale of mining equipment is recognized under the guidelines of ASC 606. During the three and nine months ending May 31, 2024, the Company generated $ 20,471 210,662 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, 2024, and August 31, 2023, respectively, the Company’s cash equivalents totaled $ 281,004 270,547 Cryptocurrency Cryptocurrencies held are accounted for as intangible assets with indefinite useful lives. An intangible asset with an indefinite useful life is not amortized but assessed for impairment quarterly, 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 cryptocurrency at the time its fair value is being measured. 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. To the extent an impairment loss is recognized, the loss establishes the new cost basis of the asset. Subsequent reversal of impairment losses, if the price of cryptocurrency increases, is not permitted. During the three and nine months ending May 31, 2024, the Company realized gains of $ 43,183 119,774 Cryptocurrency 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 moving weighted average method of accounting. The Company holds its cryptocurrencies in an account at Bitgo Trust (“Bitgo”), a well-known Bitcoin custodian, which it also uses to liquidate its Bitcoin when necessary. The Company also has an account with Gemini Trust Company, LLC, which is a qualified custodian regulated by the New York Department of Financial Services as a backup facility, and may hold Bitcoin from time to time in a cold storage wallet. The Company uses Bitgo’s multi-signature feature for account access. 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. If the warrants do not require liability classification under ASC 815-40, in order to conclude equity classification, we also assess whether the warrants are indexed to our common stock and whether the warrants are classified as equity under ASC 815-40 or other GAAP. After all such assessments, we conclude whether the warrants are classified as liability or equity. Liability classified warrants require fair value accounting at issuance and subsequent to initial issuance with all changes in fair value after the issuance date recorded in the statements of operations. Equity classified warrants only require fair value accounting at issuance with no changes recognized subsequent to the issuance date. We do not have any liability classified warrants as of any period presented. Property and equipment Property and equipment are 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: Schedule of estimated useful lives of property and equipment Life (Years) Miners and mining equipment 2 Machinery and equipment 5 7 Office and computer equipment 3 No depreciation is recorded on an asset until it is placed in service. Due to the nature of the equipment, it can only be placed in service when the hosting site is properly configured to turn on the machines. As of May 31, 2024, and August 31, 2023, the Company had $ 2,709,697 4,453,466 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 condensed financial statements. In March 2022, the SEC staff released Staff Accounting Bulletin No. 121 (“SAB 121”), which requires entities that hold crypto assets on behalf of platform users to recognize a liability to reflect the entity’s obligation to safeguard the crypto assets held for its platform users, whether directly or through an agent or another third party acting on its behalf, along with a corresponding safeguarding asset. Both the liability and corresponding safeguarding asset shall be measured at fair value. SAB 121 also requires disclosure of the nature and amount of crypto assets being safeguarded, how the fair value is determined, an entity’s accounting policy for safeguarding liabilities and corresponding safeguarding assets, and may require disclosure of other information about risks and uncertainties arising from the entity’s safeguarding activities. The Company is not in the business of holding its customer’s crypto assets for safekeeping. For crypto assets that are not maintained on our platform and for which the Company does not maintain a private key or the ability to recover a customer’s private key, these balances are not recorded, as there is no related safeguarding obligation in accordance with SAB 121. This guidance is effective from the first interim period after June 15, 2022 and should be applied retrospectively. We adopted SAB 121 during the three months ended August 31, 2023, and it did not have any impact on our condensed financial statements.

CRYPTOCURRENCIES

CRYPTOCURRENCIES	9 Months Ended
	May 31, 2024
Cryptocurrencies
CRYPTOCURRENCIES	NOTE 2 – CRYPTOCURRENCIES The following table presents additional dollar and unit information (each bitcoin represents one unit) about the Company’s bitcoin activity for the nine months ended May 31, 2024: Schedule of cryptocurrencies BTC Beginning balance – August 31, 2023 $ 129,469 5.0 Revenue received from mining and hosting 2,417,250 47.7 Loan proceeds received in cryptocurrency 527,506 19.0 Distribution from joint venture 8,408 0.2 Purchase of equipment with cryptocurrency (339,525 ) (12.2 ) Payments of loan with cryptocurrency (882,629 ) (20.8 ) Cash proceeds from the sale of cryptocurrency, net of fees (1,377,575 ) (28.6 ) Cryptocurrency used to pay expenses and to purchase equipment (433,046 ) (7.8 ) Realized gain from the sale of bitcoin 119,774 – Ending balance – May 31, 2024 $ 169,632 2.5

REVENUE FROM CONTRACTS WITH CUS

REVENUE FROM CONTRACTS WITH CUSTOMERS	9 Months Ended
	May 31, 2024
Revenue from Contract with Customer [Abstract]
REVENUE FROM CONTRACTS WITH CUSTOMERS	NOTE 3 – REVENUE FROM CONTRACTS WITH CUSTOMERS The following table presents the Company’s revenues disaggregated into categories based on the nature of such revenues: Schedule of disaggregation of revenue Nine months Ended May 31, 2024 2023 Revenues from the sale of mining equipment - net $ 210,662 $ 138,011 Revenue from hosting, net 38,743 – Revenue from self-mining 2,378,507 261,921 Total revenue $ 2,627,913 $ 399,932

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	9 Months Ended
	May 31, 2024
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	NOTE 4 – PROPERTY AND EQUIPMENT The following table sets forth the components of the Company’s property and equipment at May 31, 2024 and August 31, 2023: Schedule of property and equipment May 31, 2024 August 31, 2023 Cost Accumulated Net Book Cost Accumulated Net Book Equipment $ 3,094,077 $ (1,155,352 ) $ 1,938,725 $ 966,407 $ (470,705 ) $ 495,702 Equipment not in service 2,709,697 – 2,709,698 4,453,466 – 4,453,466 Total fixed assets $ 5,803,774 $ (1,155,352 ) $ 4,648,423 $ 5,419,873 $ (470,705 ) $ 4,949,168 Equipment not in service as of May 31, 2024 was comprised of the following: Schedule of equipment not in service Transformers and containers $ 2,589,698 Immersion fluid 120,000 Total $ 2,709,698 For the nine months ended May 31, 2024 and 2023, the Company recorded $ 684,564 294,270 Of equipment not in service at August 31, 2023, during the nine months ended May 31, 2024, the Company: · placed $ 892,042 · placed $ 851,726 · sold 100 S19 Pro+/117/220 to Luxor for $ 149,250 180,891 31,641 On October 4, 2023, the Company purchased 1,050 488,775 On May 24, 2025, we purchased 45 S-19 ASIC miners from Soluna for $ 10,000 As of May 31, 2024 the equipment not in service was solely comprised of 4 immersion containers, immersion fluid and 14 transformers .

INVESTMENTS AND NOTES RECEIVABL

INVESTMENTS AND NOTES RECEIVABLE	9 Months Ended
	May 31, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
INVESTMENTS AND NOTES RECEIVABLE	NOTE 5 – INVESTMENTS AND NOTES RECEIVABLE Policy on Doubtful Accounts We evaluate notes receivable for impairment under the guidelines of ASC 310-10-35-41. We establish an allowance for doubtful accounts when we determine that collectability of the note is in question. Investment in Joint Venture In October 2022, we entered into a joint venture arrangement with ROC Digital Mining to jointly develop and operate a Bitcoin mining operation in Pecos, Texas. Under the joint venture, we contributed one immersion container, six transformers and cash with a value of $ 987,429 240 4,400 1,200,000 5 ROC Digital is managed by ROC Digital Mining Manager LLC (“ROC Manager”), which owns all of the Class A Units of ROC Digital. The Class A Units have the sole right to vote on any matter that requires a vote of members, including in the selection of the manager. We own 33 1/3% of ROC Manager. ROC Manager is managed by from one to three managers selected by a vote of the members. We do not currently have a representative or designee serving as manager of ROC Manager. However, the operating agreement for ROC Manager provides that ROC Manager may not take a number of actions in relation to ROC Digital without the unanimous consent of its members, such as incurring more than $ 50,000 Day to day management of the operations of ROC Digital is provided by ROC Digital Mining LLC (“ROC Mining”), an affiliate of ROC Manager in which we do not have an interest. ROC Mining is entitled to a monthly management fee equal to 3% of ROC Digital’s gross revenue, subject to a monthly minimum of $ 10,000 15,000 As of May 31, 2024 the joint venture arrangement was classified as a long term asset on the Company’s balance sheet with a value of $ 867,247 170,613 Notes Receivable Notes receivable consist of notes received as partial consideration for the sale of mining equipment, and are collateralized by the mining equipment that was the subject of the sale. As of May 31, 2024 and August 31, 2023, notes receivable consist of the following: Schedule of notes receivable As of As of Note receivable with an amended principal amount of $ 731,472 5.0 $ 731,472 $ 731,472 Note receivable in original principal amount of $ 1,200,000 5.0 748,888 1,029,721 Total 1,480,360 1,761,193 Less: Non-current portion (374,444 ) (1,386,749 ) Notes receivable – short-term $ 1,105,916 $ 374,444 As of May 31, 2024 and August 31, 2023 the balance of notes receivable was $ 1,480,360 1,761,193 44,376 In April 2024, the Company agreed to extend the maturity date of a note receivable in the principal amount $731,472 from August 31, 2024 to December 31, 2024.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	9 Months Ended
	May 31, 2024
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 6 – RELATED PARTY TRANSACTIONS Line of Credit from IDI On October 19, 2022, the Company entered into a Line of Credit Agreement (the “2022 LOC Agreement”) with Innovative Digital Investors Emerging Technology, L.P. (“IDI), a limited partnership controlled by Jonathan Bates, the Company’s Chairman, and Raymond Mow, the Company’s Chief Financial Officer and a Director. The 2022 LOC Agreement provided for loans of up to $ 1,000,000 12 Effective May 13, 2023, the Company and IDI amended the 2022 LOC Agreement to increase the amount that the Company may borrow thereunder to $1,750,000, extended the date by which the Company could borrow funds thereunder to December 1, 2023, and extended the maturity date to December 1, 2024. Simultaneous with the extension, the Company borrowed an additional $500,000, primarily to fund the purchase of ASIC miners. As of May 31, 2024, the amount of principal and interest due to related party was $ 1,625,000 257,293 1,300,000 97,460 Transactions with ROC Digital Mining I, LLC In October 2022, we entered into a joint venture arrangement with ROC Digital Mining I, LLC (“ROC Digital”) to jointly develop and operate a Bitcoin mining operation in Pecos, Texas. Under the joint venture, we contributed one immersion container, six transformers and cash with a value of $ 987,429 240 4,400 1,200,000 5 1,029,721 748,888 We also obtained the right to locate one container at the location that we would be able to use for self-mining. Under our hosting agreement with ROC Digital, we located one immersion container at the site for $500 per month, plus payment of our pro rata share of electricity, internet and insurance for the site. Under the hosting agreement, we also agreed to contribute $100,000 toward the electricity deposit for the site, which is refundable to us at the earlier of the date the electricity provider releases the deposit or 90 days after the expiration or termination of the hosting agreement. See “Note 5 – Investment in Joint Venture,” for more information about ROC Digital. Transactions with Rykor Energy Solutions, LLC In May 2024, we brokered the sale of 20 transformers to Rykor Energy Solutions, LLC (“Rykor”). The total sales price of the transformers is approximately $1,407,000 and our total cost is expected to be $1,340,000. Rykor owns 2,672,000 shares of our common stock and warrants to purchase an additional 5,344,000 shares, and as a result is the beneficial owner of approximately 14.5% of our common stock.

BITCOIN LOAN AND DERIVATIVE LIA

BITCOIN LOAN AND DERIVATIVE LIABILITY	9 Months Ended
	May 31, 2024
Bitcoin Loan And Derivative Liability
BITCOIN LOAN AND DERIVATIVE LIABILITY	NOTE 7 – BITCOIN LOAN AND DERIVATIVE LIABILITY On October 4, 2023, the Company purchased 1,050 488,775 149,250 31,641 The remaining purchase price of $339,525 was financed via a forward sale of future Bitcoin production with Luxor via a hashrate derivatives contract (“Luxor Bitcoin Financing”, or “LBF”). Under the terms of the LBF, on October 4, 2023 the Company received 18.97542 Bitcoin valued at $27,799.39, each or a total of $527,505.19 in Bitcoin. In return the Company agreed to pay back Luxor 20.78946 Bitcoin in daily increments from bitcoin production generated by the 1,050 ASIC miners. The Bitcoin loan was due no later than April 1, 2024 and could not be repaid in cash. As of May 31, 2024 the Company had repaid all Bitcoin owed to Luxor under the LBF, and had no further liability under the agreement.

STOCKHOLDERS_ EQUITY

STOCKHOLDERS’ EQUITY	9 Months Ended
	May 31, 2024
Equity [Abstract]
STOCKHOLDERS’ EQUITY	NOTE 8 – STOCKHOLDERS’ EQUITY Stockholders’ Equity The Company is authorized to issue 500,000,000 0.0001 20,000,000 0.0001 49,912,607 49,665,649 Series A Convertible Preferred Stock As of May 31, 2024 and August 31, 2023, our board of directors had authorized the issuance of one series of preferred stock, the Series A Convertible Preferred Stock (the “Series A Preferred”), for 500,000 453,966 Dividends Liquidation Preference 10 Voting Rights Directors Voluntary Conversion Rights 0.575 Rank Redemption by Company Redemption by the Holders 30 2 10,000 Redemption on Fundamental Transaction Right to Participate in Future Fundings Anti-Dilution Protection Issuance of Shares During the nine months ended May 31, 2024, the Company issued the following shares: · 72,993 32,117 · 83,056 36,545 · 90,909 40,000 The Company estimates the fair value of stock-based compensation 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). The Company attributes compensation to expense using the straight-line method. Since the Company’s common stock is thinly traded, the Company utilizes the value, or an estimate thereof, paid by third parties for common stock in arms-length transactions with the Company. In particular, the Company used the estimated fair value of its common stock derived from a Unit Offering completed in June 2022. Under the Unit Offering, the Company issued investors Units consisting of one share of common stock, one Class C-1 Warrant and one Class C-2 Warrants for $1.25 per Unit. The value of the Class C-1 and 2 Warrants were deducted from the Unit price to determine the fair value of the common stock included in the Units. The Class C-1 and 2 Warrants were valued under the Black-Scholes method using the following assumptions: volatility 223.30%; annual rate of quarterly dividends 0%; term 3 years; treasury bill rate 0.4%. Warrants As of May 31, 2024, and August 31, 2023, the Company had the following warrants outstanding: Schedule of warrants outstanding Class Amount Outstanding Exercise Price Expiration Date Class A Warrants 590,000 $ 2.00 August 5, 2024 Class B Warrants 590,000 $ 5.00 August 5, 2024 Class C-1 Warrants 4,147,600 $ 2.00 January 15, 2025 Class C-2 Warrants 4,147,600 $ 4.00 January 15, 2025 Class C-3 Warrants 25,600 $ 1.25 June 27, 2027 Total 9,500,800

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	May 31, 2024
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 9 – COMMITMENTS AND CONTINGENCIES As of May 31, 2024 and August 31, 2023, the Company had no contractual commitments.

BASIS OF PRESENTATION AND SUM_2

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT POLICIES (Policies)	9 Months Ended
	May 31, 2024
Accounting Policies [Abstract]
Basis of Presentation	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 condensed 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 condensed 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 condensed 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, 2024, are not necessarily indicative of the results that may be expected for the year ending August 31, 2024.
Management’s Representation of Interim Condensed Financial Statements	Management’s Representation of Interim Condensed 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 condensed financial statements. Certain information and footnote disclosures normally included in condensed 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	Use of Estimates The preparation of condensed 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 condensed financial statements. The most significant estimates relate to the calculation of stock-based compensation, calculation of the Company’s derivative liability, useful lives and impairment of fixed assets, 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 condensed 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. There have been no material changes to the Company’s accounting estimates since the Company’s condensed financial statements for the fiscal year ended August 31, 2023.
Segment Reporting	Segment Reporting The Company operates in one segment - the cryptocurrency mining industry. In accordance with the “Segment Reporting” Topic of the ASC, the Company’s chief operating decision maker has been identified as the Chief Executive Officer and President, who reviews operating results to make decisions about allocating resources and assessing performance for the entire Company. All material Company operations qualify for aggregation due to their similar customer base and similarities in economic characteristics, nature of products and services, and procurement, manufacturing and distribution processes.
Revenue Recognition	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	Revenues from digital currency mining The Company recognizes revenue under ASC 606, Revenue from Contracts with Customers. The core principle of the revenue standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The following five steps are applied to achieve that core principle: · Step 1: Identify the contract with the customer; · Step 2: Identify the performance obligations in the contract; · Step 3: Determine the transaction price; · Step 4: Allocate the transaction price to the performance obligations in the contract; and · Step 5: Recognize revenue when the Company satisfies a performance obligation. Step 1: Step 2 · The customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer (i.e., the good or service is capable of being distinct); and · The entity’s promise to transfer the good or service to the customer is separately identifiable from other promises in the contract (i.e., the promise to transfer the good or service is distinct within the context of the contract). Based on these criteria, the Company has a single performance obligation in providing hash calculation services (i.e., hashrate) to the mining pool operator (i.e., customer). The performance obligation of hash calculation services is fulfilled daily over-time, as opposed to a point in time, because the Company provides the hashrate throughout the day and the customer simultaneously obtains control of it and uses the asset to produce bitcoin. The Company has full control of the mining equipment utilized in the mining pool and if the Company determines it will increase or decrease the processing power of its machines and/or fleet (i.e., for repairs or when power costs are excessive) the hash calculation services provided to the customer will be reduced. Step 3 The transaction consideration the Company earns is all variable since it is dependent on the daily hash calculation services provided by the Company, as well as other factors outside the control of the Company, such as the difficulty index of the bitcoin network. The Company’s bitcoins earned through the contractual payout formula is not known until the Company’s computational hashrate contributed over the daily measurement period is fulfilled over-time daily between midnight-to-midnight UTC time. The Company’s expected amount of the global network transaction fee rewards earned are calculated at the end of each transactional day (midnight to midnight UTC time). There are no other forms of variable considerations, such as discounts, rebates, refunds, credits, price concessions, incentives, performance bonuses, penalties, or other similar items. The Company fully constrains all variable consideration as a result of ASC 606-10-32-11 and 12 because the amount of consideration is highly susceptible to factors outside of our control as defined by the Company’s customer’s payout methodology. The variable consideration is constrained until the Company receives confirmation of the amount, usually via settlement of the fractional share of block reward and transaction fee in the Company’s digital wallet (i.e., at that point, the variability is resolved and there is no longer the reasonable possibility of significant reversal of revenue). Before settlement occurs, estimation of the variable consideration to which the Company is entitled, which depends on inputs unknowable to the Company, carries the risk of a significant revenue reversal from mis-estimation. Settlement of consideration typically occurs within 24 hours after the end of each day. Step 4 Step 5 In exchange for providing hash calculation services, the Company is entitled to the expected bitcoin awards earned over the measurement period, plus the expected global transaction fee rewards for the respective measurement period, less net digital asset fees due to the mining pool operator over the measurement period. The transaction consideration the Company receives is non-cash consideration, in the form of bitcoin. Prior to March 1, 2024, the Company measured the bitcoin at the closing U.S. dollar spot rate at the end of the date earned (midnight UTC). As of March 1, 2024, the Company began measuring the bitcoin at the opening U.S. dollar spot rate at the beginning of the date earned (midnight UTC). The change in method of calculating revenues from bitcoin mining did not result in material change in the revenues reported. There are no deferred revenues or other liability obligations recorded by the Company since there are no payments in advance of the performance. At the end of the 24 hour “midnight-to-midnight” period, there are no remaining performance obligations. During the nine months ending May 31, 2024, the Company utilized one mining pool for its self-mining operations, which charges 0.3% of the bitcoin payable to the Company as a pool management fee. During the three and nine months ending May 31, 2024, the Company generated $1,187,759 and $2,378,507 respectively, in revenues from mining cryptocurrency.
Revenues from Hosting	Revenues from Hosting The Company provides energized space to customers who locate their equipment within the Company’s co-hosting facility. The equipment generating the hosting revenue is owned by the customer. The Company gives hosting customers the option of having all mining proceeds paid into a cold wallet address in the Company’s name, which case the Company pays the hosting client its share of mining awards on a daily basis, or having all mining awards sent to an account of the customer, in which case the Company bills the customer monthly for any hosting fee that is contingent on the amount of the client’s award. All performance obligations are achieved simultaneously by providing the hosting environment for the customers’ operations. Hosting revenues consist of amounts billed in U.S. dollars for electricity and other fees, and a percentage of cryptocurrency generated by the client’s hosting activities. With regard to hosting revenues that are billed in U.S. dollars, revenues are recorded at the time of invoicing. With regard to hosting revenues that are based on a percentage of cryptocurrency generated by the customer, revenues are recorded based on the Company’s share of cryptocurrency received from the mining pool on the date of receipt or invoicing. During the three and nine months ending May 31, 2024, the Company generated $ 16,762 38,743
Revenues from the sale of mining equipment	Revenues from the sale of mining equipment The Company records revenue from the resale of mining equipment it has purchased. Revenue for the sale of mining equipment is recognized under the guidelines of ASC 606. During the three and nine months ending May 31, 2024, the Company generated $ 20,471 210,662
Cash and cash equivalents	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, 2024, and August 31, 2023, respectively, the Company’s cash equivalents totaled $ 281,004 270,547
Cryptocurrency	Cryptocurrency Cryptocurrencies held are accounted for as intangible assets with indefinite useful lives. An intangible asset with an indefinite useful life is not amortized but assessed for impairment quarterly, 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 cryptocurrency at the time its fair value is being measured. 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. To the extent an impairment loss is recognized, the loss establishes the new cost basis of the asset. Subsequent reversal of impairment losses, if the price of cryptocurrency increases, is not permitted. During the three and nine months ending May 31, 2024, the Company realized gains of $ 43,183 119,774 Cryptocurrency 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 moving weighted average method of accounting. The Company holds its cryptocurrencies in an account at Bitgo Trust (“Bitgo”), a well-known Bitcoin custodian, which it also uses to liquidate its Bitcoin when necessary. The Company also has an account with Gemini Trust Company, LLC, which is a qualified custodian regulated by the New York Department of Financial Services as a backup facility, and may hold Bitcoin from time to time in a cold storage wallet. The Company uses Bitgo’s multi-signature feature for account access.
Income taxes	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	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 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	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. If the warrants do not require liability classification under ASC 815-40, in order to conclude equity classification, we also assess whether the warrants are indexed to our common stock and whether the warrants are classified as equity under ASC 815-40 or other GAAP. After all such assessments, we conclude whether the warrants are classified as liability or equity. Liability classified warrants require fair value accounting at issuance and subsequent to initial issuance with all changes in fair value after the issuance date recorded in the statements of operations. Equity classified warrants only require fair value accounting at issuance with no changes recognized subsequent to the issuance date. We do not have any liability classified warrants as of any period presented.
Property and equipment	Property and equipment Property and equipment are 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: Schedule of estimated useful lives of property and equipment Life (Years) Miners and mining equipment 2 Machinery and equipment 5 7 Office and computer equipment 3 No depreciation is recorded on an asset until it is placed in service. Due to the nature of the equipment, it can only be placed in service when the hosting site is properly configured to turn on the machines. As of May 31, 2024, and August 31, 2023, the Company had $ 2,709,697 4,453,466
Recent Accounting Pronouncements	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 condensed financial statements. In March 2022, the SEC staff released Staff Accounting Bulletin No. 121 (“SAB 121”), which requires entities that hold crypto assets on behalf of platform users to recognize a liability to reflect the entity’s obligation to safeguard the crypto assets held for its platform users, whether directly or through an agent or another third party acting on its behalf, along with a corresponding safeguarding asset. Both the liability and corresponding safeguarding asset shall be measured at fair value. SAB 121 also requires disclosure of the nature and amount of crypto assets being safeguarded, how the fair value is determined, an entity’s accounting policy for safeguarding liabilities and corresponding safeguarding assets, and may require disclosure of other information about risks and uncertainties arising from the entity’s safeguarding activities. The Company is not in the business of holding its customer’s crypto assets for safekeeping. For crypto assets that are not maintained on our platform and for which the Company does not maintain a private key or the ability to recover a customer’s private key, these balances are not recorded, as there is no related safeguarding obligation in accordance with SAB 121. This guidance is effective from the first interim period after June 15, 2022 and should be applied retrospectively. We adopted SAB 121 during the three months ended August 31, 2023, and it did not have any impact on our condensed financial statements.

BASIS OF PRESENTATION AND SUM_3

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT POLICIES (Tables)	9 Months Ended
	May 31, 2024
Accounting Policies [Abstract]
Schedule of estimated useful lives of property and equipment	Schedule of estimated useful lives of property and equipment Life (Years) Miners and mining equipment 2 Machinery and equipment 5 7 Office and computer equipment 3

CRYPTOCURRENCIES (Tables)

CRYPTOCURRENCIES (Tables)	9 Months Ended
	May 31, 2024
Cryptocurrencies
Schedule of cryptocurrencies	Schedule of cryptocurrencies BTC Beginning balance – August 31, 2023 $ 129,469 5.0 Revenue received from mining and hosting 2,417,250 47.7 Loan proceeds received in cryptocurrency 527,506 19.0 Distribution from joint venture 8,408 0.2 Purchase of equipment with cryptocurrency (339,525 ) (12.2 ) Payments of loan with cryptocurrency (882,629 ) (20.8 ) Cash proceeds from the sale of cryptocurrency, net of fees (1,377,575 ) (28.6 ) Cryptocurrency used to pay expenses and to purchase equipment (433,046 ) (7.8 ) Realized gain from the sale of bitcoin 119,774 – Ending balance – May 31, 2024 $ 169,632 2.5

REVENUE FROM CONTRACTS WITH C_2

REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)	9 Months Ended
	May 31, 2024
Revenue from Contract with Customer [Abstract]
Schedule of disaggregation of revenue	Schedule of disaggregation of revenue Nine months Ended May 31, 2024 2023 Revenues from the sale of mining equipment - net $ 210,662 $ 138,011 Revenue from hosting, net 38,743 – Revenue from self-mining 2,378,507 261,921 Total revenue $ 2,627,913 $ 399,932

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	9 Months Ended
	May 31, 2024
Property, Plant and Equipment [Abstract]
Schedule of property and equipment	Schedule of property and equipment May 31, 2024 August 31, 2023 Cost Accumulated Net Book Cost Accumulated Net Book Equipment $ 3,094,077 $ (1,155,352 ) $ 1,938,725 $ 966,407 $ (470,705 ) $ 495,702 Equipment not in service 2,709,697 – 2,709,698 4,453,466 – 4,453,466 Total fixed assets $ 5,803,774 $ (1,155,352 ) $ 4,648,423 $ 5,419,873 $ (470,705 ) $ 4,949,168
Schedule of equipment not in service	Schedule of equipment not in service Transformers and containers $ 2,589,698 Immersion fluid 120,000 Total $ 2,709,698

INVESTMENTS AND NOTES RECEIVA_2

INVESTMENTS AND NOTES RECEIVABLE (Tables)	9 Months Ended
	May 31, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Schedule of notes receivable	Schedule of notes receivable As of As of Note receivable with an amended principal amount of $ 731,472 5.0 $ 731,472 $ 731,472 Note receivable in original principal amount of $ 1,200,000 5.0 748,888 1,029,721 Total 1,480,360 1,761,193 Less: Non-current portion (374,444 ) (1,386,749 ) Notes receivable – short-term $ 1,105,916 $ 374,444

STOCKHOLDERS_ EQUITY (Tables)

STOCKHOLDERS’ EQUITY (Tables)	9 Months Ended
	May 31, 2024
Equity [Abstract]
Schedule of warrants outstanding	Schedule of warrants outstanding Class Amount Outstanding Exercise Price Expiration Date Class A Warrants 590,000 $ 2.00 August 5, 2024 Class B Warrants 590,000 $ 5.00 August 5, 2024 Class C-1 Warrants 4,147,600 $ 2.00 January 15, 2025 Class C-2 Warrants 4,147,600 $ 4.00 January 15, 2025 Class C-3 Warrants 25,600 $ 1.25 June 27, 2027 Total 9,500,800

BASIS OF PRESENTATION AND SUM_4

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT POLICIES (Details)	May 31, 2024
Miners And Mining Equipment [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	2 years
Machinery and Equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	5 years
Machinery and Equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	7 years
Office And Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	3 years

BASIS OF PRESENTATION AND SUM_5

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT POLICIES (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	May 31, 2024	May 31, 2023	May 31, 2024	May 31, 2023	Aug. 31, 2023
Accounting Policies [Abstract]
Revenue from hosting	$ 16,762	$ 0	$ 38,743	$ 0
Revenue from the sale of mining equipment	20,471	13,647	210,662	138,011
Cash equivalents	281,004		281,004		$ 270,547
Realized gain from sale of cryptocurrency	43,183	$ 5,659	119,774	$ 18,420
Fixed assets not in service	$ 2,709,697		$ 2,709,697		$ 4,453,466

CRYPTOCURRENCIES (Details)

CRYPTOCURRENCIES (Details)	9 Months Ended
	May 31, 2024 USD ($) Decimal	Aug. 31, 2023 USD ($) Decimal
Crypto Asset, Holding [Line Items]
Cryptocurrency, balance | $	$ 169,632	$ 129,469
Crypto units, balance | Decimal	2.5	5
Revenues From Mining And Hosting [Member]
Crypto Asset, Holding [Line Items]
Crypto asset addition | $	$ 2,417,250
Crypto asset addition in units | Decimal	47.7
Loan Proceeds [Member]
Crypto Asset, Holding [Line Items]
Crypto asset addition | $	$ 527,506
Crypto asset addition in units | Decimal	19
Distribution From Joint Venture [Member]
Crypto Asset, Holding [Line Items]
Crypto asset addition | $	$ 8,408
Crypto asset addition in units | Decimal	0.2
Purchase Of Equipment [Member]
Crypto Asset, Holding [Line Items]
Crypto asset reduction | $	$ (339,525)
Crypto asset reduction, in units | Decimal	(12.2)
Repayment Of Loan [Member]
Crypto Asset, Holding [Line Items]
Crypto asset reduction | $	$ (882,629)
Crypto asset reduction, in units | Decimal	(20.8)
Sale Of Cryptocurrency [Member]
Crypto Asset, Holding [Line Items]
Sale of cryptocurrency | $	$ (1,377,575)
Sale of cryptocurrency, in units | Decimal	(28.6)
Payment For Expenses And Equipment [Member]
Crypto Asset, Holding [Line Items]
Payment for services | $	$ (433,046)
Payment for services, in units | Decimal	(7.8)
Sale Of Bitcoin [Member]
Crypto Asset, Holding [Line Items]
Crypto asset realized gain | $	$ 119,774
Crypto asset realized gain, in units | Decimal	0

REVENUE FROM CONTRACTS WITH C_3

REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($)	3 Months Ended		9 Months Ended
	May 31, 2024	May 31, 2023	May 31, 2024	May 31, 2023
Revenue from Contract with Customer [Abstract]
Revenues from the sale of mining equipment - net	$ 20,471	$ 13,647	$ 210,662	$ 138,011
Revenue from hosting, net	16,762	0	38,743	0
Revenue from self-mining	1,187,759	128,479	2,378,507	261,921
Total revenue	$ 1,224,992	$ 142,126	$ 2,627,913	$ 399,932

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details - Property and equipment) - USD ($)	May 31, 2024	Aug. 31, 2023
Equipment [Member]
Property, Plant and Equipment [Line Items]
Cost	$ 3,094,077	$ 966,407
Accumulated depreciation	(1,155,352)	(470,705)
Net Book Value	1,938,725	495,702
Equipment Not In Service [Member]
Property, Plant and Equipment [Line Items]
Cost	2,709,697	4,453,466
Accumulated depreciation	0	0
Net Book Value	2,709,698	4,453,466
Fixed Assets [Member]
Property, Plant and Equipment [Line Items]
Cost	5,803,774	5,419,873
Accumulated depreciation	(1,155,352)	(470,705)
Net Book Value	$ 4,648,423	$ 4,949,168

PROPERTY AND EQUIPMENT (Detai_2

PROPERTY AND EQUIPMENT (Details - Property not in service)	May 31, 2024 USD ($)
Property, Plant and Equipment [Line Items]
Property and equipment not in service	$ 2,709,698
Transformers And Containers [Member]
Property, Plant and Equipment [Line Items]
Property and equipment not in service	2,589,698
Immersion Fluid [Member]
Property, Plant and Equipment [Line Items]
Property and equipment not in service	$ 120,000

PROPERTY AND EQUIPMENT (Detai_3

PROPERTY AND EQUIPMENT (Details Narrative)			3 Months Ended		9 Months Ended
	May 24, 2025 USD ($)	Oct. 04, 2023 USD ($) Integer	May 31, 2024 USD ($)	May 31, 2023 USD ($)	May 31, 2024 USD ($)	May 31, 2023 USD ($)
Depreciation expense			$ 232,781	$ 147,005	$ 684,564	$ 294,270
Property and equipment not in service			2,709,698		2,709,698
Loss on sale of property					31,641	$ 0
ASIC Miners [Member]
Units purchased | Integer		1,050
Payment for productive assets		$ 488,775
ASIC Miners [Member] | Soluna [Member] | Forecast [Member]
Payment for productive assets	$ 10,000
Sale To Luxor [Member]
Property and equipment not in service			180,891		180,891
Proceeds from sale of property					149,250
Loss on sale of property					31,641
Trinidad [Member]
Property and equipment not in service			892,042		892,042
Pecos Texas [Member]
Property and equipment not in service			$ 851,726		$ 851,726

INVESTMENTS AND NOTES RECEIVA_3

INVESTMENTS AND NOTES RECEIVABLE (Details) - USD ($)	May 31, 2024	Aug. 31, 2023	Dec. 30, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	$ 1,480,360	$ 1,761,193
Less: Non-current portion	(374,444)	(1,386,749)
Notes receivable - short term	1,105,916	374,444
Note Receivable 1 [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Note receivable face amount	$ 731,472
Note receivable stated interest rate	5%
Total	$ 731,472	731,472
Note Receivable 2 [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Note receivable face amount			$ 1,200,000
Note receivable stated interest rate			5%
Total	$ 748,888	$ 1,029,721

INVESTMENTS AND NOTES RECEIVA_4

INVESTMENTS AND NOTES RECEIVABLE (Details Narrative) - USD ($)	1 Months Ended	3 Months Ended		9 Months Ended
	Apr. 30, 2024	May 31, 2024	May 31, 2023	May 31, 2024	May 31, 2023	Aug. 31, 2023	Oct. 31, 2022
Long term asset		$ 808,407		$ 808,407		$ 987,429
Indebtedness incurred		50,000		50,000
[custom:NotesReceivable-0]		1,480,360		1,480,360		1,761,193
Interest and Other Income		14,793	$ 14,433	44,376	$ 27,284
Description of debt instrument	the Company agreed to extend the maturity date of a note receivable in the principal amount $731,472 from August 31, 2024 to December 31, 2024.
Minimum [Member]
Monthly payments related to revenue				10,000
Maximum [Member]
Monthly payments related to revenue				15,000
ROC Digital Mining I, LLC [Member]
Long term asset		867,247		867,247
Reduction in value of investment				170,613
Joint Venture Arrangement [Member] | ROC Digital Mining I, LLC [Member]
Long term asset							$ 987,429
Investment per unit							4,400
Note receivable		$ 748,888		$ 748,888		$ 1,029,721
Joint Venture Arrangement [Member] | ROC Digital Mining I, LLC [Member] | Immersion Containers [Member]
Note receivable							$ 1,200,000
Note receivable interest rate							5%
Joint Venture Arrangement [Member] | ROC Digital Mining I, LLC [Member] | ROC Digital Class B Units [Member]
Investment shares owned							240

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)		1 Months Ended	9 Months Ended
	Oct. 19, 2022	Oct. 31, 2022	May 31, 2024	Aug. 31, 2023
Capital contribution			$ 808,407	$ 987,429
Description site from insurance		Under our hosting agreement with ROC Digital, we located one immersion container at the site for $500 per month, plus payment of our pro rata share of electricity, internet and insurance for the site. Under the hosting agreement, we also agreed to contribute $100,000 toward the electricity deposit for the site, which is refundable to us at the earlier of the date the electricity provider releases the deposit or 90 days after the expiration or termination of the hosting agreement.
Related party transaction description			The total sales price of the transformers is approximately $1,407,000 and our total cost is expected to be $1,340,000. Rykor owns 2,672,000 shares of our common stock and warrants to purchase an additional 5,344,000 shares, and as a result is the beneficial owner of approximately 14.5% of our common stock.
ROC Digital Mining I, LLC [Member]
Capital contribution			$ 867,247
Joint Venture Arrangement [Member] | ROC Digital Mining I, LLC [Member]
Capital contribution		$ 987,429
Investment per unit		4,400
Note receivable			748,888	1,029,721
Joint Venture Arrangement [Member] | ROC Digital Mining I, LLC [Member] | Immersion Containers [Member]
Note receivable		$ 1,200,000
Note receivable interest rate		5%
Joint Venture Arrangement [Member] | ROC Digital Mining I, LLC [Member] | ROC Digital Class B Units [Member]
Investment shares owned		240
LOC Agreement 2022 [Member]
Line of credit facility	$ 1,000,000
Line of credit interest rate	12%
Amount of principal			1,625,000	1,300,000
Interest payable			$ 257,293	$ 97,460

BITCOIN LOAN AND DERIVATIVE L_2

BITCOIN LOAN AND DERIVATIVE LIABILITY (Details Narrative)		9 Months Ended
	Oct. 04, 2023 USD ($) Integer	May 31, 2024 USD ($)	May 31, 2023 USD ($)
Offsetting Assets [Line Items]
Loss on sale of property		$ 31,641	$ 0
Sale To Luxor [Member]
Offsetting Assets [Line Items]
Proceeds from sale of property		149,250
Loss on sale of property		$ 31,641
ASIC Miners [Member]
Offsetting Assets [Line Items]
Units purchased | Integer	1,050
Payment for productive assets	$ 488,775

STOCKHOLDERS' EQUITY (Details)

STOCKHOLDERS' EQUITY (Details)	9 Months Ended
	May 31, 2024 $ / shares shares
Class of Warrant or Right [Line Items]
Warrants amount outstanding	9,500,800
Class A Warrants [Member]
Class of Warrant or Right [Line Items]
Warrants amount outstanding	590,000
Warrants exercise price | $ / shares	$ 2
Warrants expiration date	Aug. 05, 2024
Class B Warrants [Member]
Class of Warrant or Right [Line Items]
Warrants amount outstanding	590,000
Warrants exercise price | $ / shares	$ 5
Warrants expiration date	Aug. 05, 2024
Class C-1 Warrants [Member]
Class of Warrant or Right [Line Items]
Warrants amount outstanding	4,147,600
Warrants exercise price | $ / shares	$ 2
Warrants expiration date	Jan. 15, 2025
Class C-2 Warrants [Member]
Class of Warrant or Right [Line Items]
Warrants amount outstanding	4,147,600
Warrants exercise price | $ / shares	$ 4
Warrants expiration date	Jan. 15, 2025
Class C-3 Warrants [Member]
Class of Warrant or Right [Line Items]
Warrants amount outstanding	25,600
Warrants exercise price | $ / shares	$ 1.25
Warrants expiration date	Jun. 27, 2027

STOCKHOLDERS_ EQUITY (Details N

STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($)	9 Months Ended
	May 31, 2024	Aug. 31, 2023
Accumulated Other Comprehensive Income (Loss) [Line Items]
Common stock, shares authorized	500,000,000	500,000,000
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares outstanding	49,912,607	49,665,649
Officer Employment Contract [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Number of shares issued for compensation	72,993
Number of value issued for compensation	$ 32,117
Officer Employment Contract One [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Number of shares issued for compensation	83,056
Number of value issued for compensation	$ 36,545
Officer Employment Contract Two [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Number of shares issued for compensation	90,909
Number of value issued for compensation	$ 40,000
Series A Preferred Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Preferred stock, shares authorized	500,000	500,000
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares issued	453,966	453,966
Liquidation preference per share	$ 10
Conversion price	$ 0.575
Redeemed percentage	30%
Number of value redeemed	$ 2,000,000
Number of shares redeemed	10,000
Preferred Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Preferred stock, shares authorized	20,000,000
Preferred stock, par value	$ 0.0001