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Subsequent Events
3 Months Ended
Mar. 31, 2020
Subsequent Events [Abstract]  
Subsequent Events

Note 11. Subsequent Events

 

The Company has evaluated the impacts of subsequent events through May 14, 2020 and has determined that no such events occurred that were required to be reflected in the unaudited condensed consolidated financial statements, except as described within the above notes and described below.

 

On May 7, 2020, the holder of the June 2018 Note converted $150,000 of debt principal into 16,483,516 shares of common stock, reducing the outstanding principal to $429.

 

On April 16, 2020, the Company entered into a promissory note with Aquesta Bank for $108 in connection with the Paycheck Protection Program offered by the U.S. Small Business Administration. The note bears interest at 1% per annum, with monthly installments of $6 commencing on November 1, 2020 for 18 months through its maturity on April 1, 2022. The principal amount of the loan will be forgiven if the loan proceeds are used to pay for payroll costs, rent and utilities costs over the 8-week period after the loan is made. Not more than 25% of the forgiven amount may be used for non-payroll costs. The amount of the loan forgiveness will be reduced if the Company reduces its full-time head count.

 

On May 11, 2020, the third Halving, described below, occurred, revising the reward payout to 6.25 Bitcoin per block, from the previous reward payout of 12.5 Bitcoin per block The supply of Bitcoin is finite. Once 21 million Bitcoin are generated, the network will stop producing more. Currently, there are approximately 18 million Bitcoin in circulation, or 85% of the total supply of Bitcoin. Within the Bitcoin protocol is an event referred to as Halving where the Bitcoin reward provided upon mining a block is reduced by 50%. Halvings are scheduled to occur once every 210,000 blocks, or roughly every four years, until the maximum supply of 21 million Bitcoin is reached.