NOTE 5 – NOTES RECEIVABLE

As of August 31, 2022 and August 31, 2021 the balance of notes receivable, short term and long term was $1,023,741 and $-0-, respectively. As of May 31, 2022 the Company had a note receivable arose from the sale of mining equipment and pursuant to a hosting agreement with the Crypto Company (“TCC”) for $337,500, in which half of the sale proceeds of $168,750 was received by the Company in cash, and the remaining half was in the form of a note receivable for $168,750.

On October 19, 2022, the Company entered into a Repurchase and Hosting Agreement (the “TCC Agreement”) with “TCC”, under which the Company agreed to repurchase certain ASIC miners which it had previously sold to TCC, purchase some additional ASIC miners owned by TCC, and terminate a hosting agreement between the Company and TCC. On February 23, 2022, the Company sold TCC 70 Antminer T-17’s for $175,000 and 25 Whatsminers for $162,500, for a total purchase price of $337,500. TCC paid 50% of the purchase price in cash, and the balance by execution of a note payable to the Company for $168,750. Simultaneous with the sale, the Company and TCC entered into a hosting agreement under which the Company agreed to host the miners at its hosting facilities in Trinidad, along with other miners owned by TCC. Under the hosting agreement, the Company will (a) accept the return of the 70 Antminer TY-17s for a credit of $175,000, (b) purchase the 25 Whatsminers for $62,500, and (c) purchase 72 Antminer T-19s from TCC for $144,000. The credit and purchase prices for the equipment will be applied to cancel the note, with the balance of $212,500 payable by the Company in cash. Upon consummation of the TCC Agreement, the hosting agreement will be terminated. The effective date of the TCC Agreement will not occur until the Company pays the net price due to TCC. The Company plans to use the 25 Whatsminers and 72 Antminer T-19s in its self-mining operations, as part of its transition from a hosting company to a self-mining company. The Company believes it can repair some of the 70 Antminer T-17s, which it will use for self-mining. As a result of the TCC Agreement the Company wrote off its note receivable of $168,750 and charged it to "Cost of sales - mining equipment” on its Statements of Operations for the year ended August 31, 2022.

On August 12, 2022 the Company sold two immersion crypto containers to West Indian Mining Company Ltd. (“Wimco”) for $960,000. Wimco made an initial payment of $50,000 prior to August 31, 2022 which the Company recorded as revenue on its Statement of Operations for period ended August 31, 2022. Under the terms of the agreement Wimco agreed to make 25 equal monthly installment payments of $40,950 which includes interest at 7.5%. Under the guidelines of ASC 606, since Wimco is a new entity with a limited credit history and terms of the sale to Wimco enable the Company to regain title to the equipment in the event of a payment default, the Company has recorded deferred revenue of $485,234 on the transaction. As Wimco makes its monthly payments, the Company will reduce its note receivable and deferred revenue and recognize income from the sale of equipment, cost of sales and interest income.