NOTE 12. COMMITMENTS AND CONTINGENCIES

Legal contingencies

From time to time, the Company may be a defendant in pending or threatened legal proceedings arising in the normal course of business. Management is not aware of any pending, threatened or asserted claims.

On September 9, 2024, the Company entered into a non-binding agreement with Veterans Capital Corp. (“Veterans”) to lease ASIC crypto miners, valued at $2,300,000, to be housed at the Orofino, Idaho facility. The agreement requires a non-refundable fee of $10,500, which was paid during the quarter ended September 30, 2024, and an additional $14,500, which would be due upon execution of the lease contract. The agreement also indicates that the $10,500 paid would be applied to the $25,000 lease commitment fee, if the contract is executed. If the parties do not execute the lease contract, no further amounts are owed by the Company. This lease was ultimately not consummated, and Veteran’s Capital refunded $2,660 of the fees paid.

On September 19, 2024, the Company entered into an agreement with Del Cielo LLC for the introduction of potential leasing companies and institutional investment banking firms. The agreement required an initial payment of $12,500 and ongoing monthly payments of $5,500. The Company paid $12,500 during the quarter ended September 30, 2024, and the $5,500 initial monthly payment was made in October 2024. The agreement also provides that subsequent to November 20, 2024, the agreement can be terminated at any time. The Company paid $8,250 as a final payment in April 2025 to put the agreement on hold

On October 20, 2024, the Company entered into an agreement with Clearwater Power Company “Clearwater”) for the provision of electric power and facilities to support its cryptocurrency mining operations in Orofino, Idaho. As part of this contract, the Company deposited approximately $77,000 with Clearwater, held as a non-interest-bearing security deposit. The related and unrelated mortgages dated March 5, 2025, used to acquire the Orofino facility are secured by two liens, see “NOTE 11. RELATED PARTIES TRANSACTIONS” and “NOTE 13. NOTES PAYABLE-UNRELATEED THIRD PARTIES” FOR MORE DETAILS

See other commitments and contingencies under “NOTE 11. RELATED PARTY TRANSACTIONS”, “NOTE 13. NOTES PAYABLE” and NOTE 16. SUBSEQUENT EVENTS”.