Digitial Asset Mining
|9 Months Ended|
Sep. 30, 2019
|Digitial Asset Mining|
|Digital Asset Mining||
NOTE 3 – DIGITIAL ASSET MINING
On September 30, 2019, the Company consummated the purchase of 6,000 S-9 Bitmain 13.5 TH/s Bitcoin Antminers from SelectGreen Blockchain Ltd, a British Columbia corporation, for which the purchase price was $4,086,250 or 2,335,000 shares of its common stock at a price of $1.75 per share. As a result of an exchange cap requirement imposed in conjunction with the Company’s Listing of Additional Shares application filed with Nasdaq with regard to the transaction, the Company issued 1,279,442 shares of its common stock which represented $2,233,773 or the $4,086,250 (constituting 19.9% of the issued and outstanding shares outstanding on the date of the Asset Purchase Agreement for the transaction) and upon receipt of shareholder approval, at the Special Shareholders Meeting on November 15, 2019, the Company will issue the balance of the 1,058,558 unregistered common stock shares. The $1,852,477 set forth on the balance sheet for mining servers payable reflects this balance of 1,058,558 shares to be issued at $1.75 per share immediately upon receipt of shareholder approval, thus immediately satisfying the mining servers payable. If the Company does not gain shareholder approval (which it anticipates it will receive), it would plan to resolicit shareholders after a reasonable waiting period; however, this is neither the intention nor the requirement to make payment in cash.
The components of property, equipment and intangible assets as of September 30, 2019 and December 31, 2018 are:
The Company’s depreciation expense for the three and nine months ended September 30, 2019 were $137,361 and $412,083, and $598,549 and $1,405,147 for the three and nine months ended September 30, 2018, respectively. Amortization expense were $17,794 and $53,382 for the three and nine months ended September 30, 2019, and $18,308 and $48,222 for the three and nine months ended September 30, 2018, respectively.