Item 2. Properties
Item
2. Properties
In
December 2020, the Company started renting executive office space located at 2700 Homestead Road, Park City, UT 84098, for approximately
$3,000 per month. The executive office space is rented from Barlock Capital Management, LLC, a related party.
On
April 18, 2020 the Company entered into a commercial lease for 3,200 square feet of warehouse space at 16142 Wyandotte Street, Van Nuys,
California 91405. The monthly lease payment is approximately $3,900, with an approximate 2% escalation in rent per year. The term of
the lease is for five years, expiring on May 1, 2025.
On
October 22, 2021, the Company entered into an agreement with ANEC, a related party, where ANEC would: (i) allow the Company to moor a
barge on the ANEC operations site with the Company’s mobile data center that houses cryptocurrency miners and a mobile turbine,
and, (ii) supply natural gas to power a mobile turbine that produces electricity that, in turn, is used to power the miners. ANEC charges
the Company for the amount of natural gas used based on the daily spot price of an unaffiliated third party, and a daily fee of
$1,500 during the initial 90-day term, and $2,000 thereafter, for the use of their operations site to moor the barge. The agreement has
an initial term of 90 days and continues on a month-to-month basis for 3 additional months. Either party may terminate the agreement
at the end of the initial term, or at any time during the additional 3 months term by providing the other party 30-day notice. ANEC may
terminate the agreement at any time under certain conditions.
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