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RELATED PARTY TRANSACTIONS
3 Months Ended
Dec. 31, 2016
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS

9. RELATED PARTY TRANSACTIONS

 

On October 1, 2014, the Company entered into a Consulting agreement with Matthew Schultz, its Chief Executive Officer for management services. In accordance with this agreement, Mr. Schultz provides services to the Company in exchange for $7,500 to $15,000 per month plus additional reimbursable expenses incurred. The term of the agreement was one month and automatically renewed each month until cancelled by either party. During the quarter ending December 31, 2016, Mr. Schultz was paid $30,076 in accordance with this agreement and is owed $29,924 in accrued compensation as of December 31, 2016.

 

On July 1, 2016, the Company entered into a Consulting agreement with Zachary Bradford, its President and Chief Financial Officer for management services. In accordance with this agreement, Mr. Bradford provides services to the Company in exchange for $15,000 per month plus reimbursable expenses incurred. During the quarter ending December 31, 2016, Mr. Bradford was paid $25,000 under this this agreement and was owed $50,000 in accrued compensation as of December 31, 2016.

 

On July 1, 2016, the Company entered into a Consulting agreement with Bryan Huber, its Chief Operating Officer for management services. In accordance with this agreement, Mr. Huber provided services to the Company in exchange for $2,000 per week plus reimbursable expenses incurred. During the quarter ending December 31, 2016, Mr. Huber was paid $32,000 under this this agreement and was owed $6,000 in accrued compensation as of December 31, 2016.

 

On July 1, 2016, as part of the acquisition of the assets of CleanSpark, LLC, the Company agreed to assume certain trade payables not to exceed $200,000 associated with the ongoing business. On the date of the acquisition, the Company assumed $262,573 in liabilities and, as a result, $62,573 became reimbursable by CleanSpark Holdings, LLC who is now a shareholder. $49,000 was due from CleanSpark Holdings as of December 31, 2016. During the quarter ending December 31, 2016, the Company received net reimbursements of $4,020 related to this balance.