RELATED PARTY TRANSACTIONS

12 Months Ended

Sep. 30, 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 per month plus reimbursable expenses incurred. The term of the agreement was one month and automatically renewed each month until cancelled by either party. During the year ending September 30, 2016, Mr. Schultz was paid $97,500 in accordance with this agreement and is owed $15,000 in accrued compensation as of September 30, 2016.

On July 1, 2016, the Company entered into a Consulting agreement with Zachary Bradford, its 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. Mr. Bradford agreed to defer $10,000 of his compensation per month for the quarter ended September 30, 2016. During the year ending September 30, 2016, Mr. Bradford was paid $15,000 in accordance with this agreement and was owed $30,000 in accrued compensation as of September 30, 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. During the quarter ending September 30, 2016, the Company received net reimbursements of $9,553 related to this balance.