Thoughts?
I might not be comparing apples to apples here. From Fork last financials on CSE the did a couple deals. One deal for 4000 machines. How can AM Mining file for the huge amount in its lawsuit? What am I missing? Would 3000 machines merit a claim of $37.5 million? Hard to justify that amount or even close to it.
From reports on CSE:
On April 10, 2018, the Company entered into an asset purchase agreement with an arm’s length party. The Company purchased 4,000 cryptocurrency machines through the issuance of 62,830,357 common shares with a fair value of $5,340,580. The Company issued 4,398,125 finder common shares with a fair value of $131,944.
On May 24, 2018, the Company issued 56,338,028 common shares with a fair value of $2,535,211 pursuant to the acquisition of cryptocurrency machines. The Company issued 3,943,662 finder common shares with a fair value of $118,310.
During the period from November 9, 2017 (incorporation) to April 30, 2018, Coinstream purchased 100% of the issued and outstanding shares of Vaninga. Vaninga’s net assets included a data center facility, which was subsequently transferred to the Company pursuant to the Arrangement at a fair value of $1,437,724 (note 4).
During the period ended January 31, 2019, the Company purchased 4,000 cryptocurrency machines from an arm’s length party through the issuance of 62,830,357 common shares with a fair value of $5,340,580. The Company issued 4,398,125 finder common shares with a fair value of $131,944 and paid shipping cost of $632,450, which have been capitalized to property plant and equipment. As of the reporting date, the Company took possession of the 4,000 cryptocurrency machines.
During the period ended January 31, 2019, the Company acquired 5,000 cryptocurrency machines from CryptoPower (Note 4) with a fair value of 2,994,750. The Company issued finder common shares with a fair value of $139,755, which have been capitalized to property, plant, and equipment.
The Company conducted a valuation of the cryptocurrency mining machines and determined that impairment was required. It was determined that in order to carry the assets at their fair value, an impairment of $25,755,365 was recorded.
In measuring the fair value of the mining equipment, the Company employed the depreciated replacement cost methodology. The replacement value of the mining equipment was estimated based on recent open market transaction data involving the acquisition of Bitmain Antminer S9 mining machines, Ebit 9+ and Ebit 9.2 mining machines observed as of the date of the unaudited condensed interim consolidated financial statements. Observed values from the transaction data were then adjusted for accumulated depreciation/functional obsolescence. The mining equipment was estimated to have an average useful life of four years (if acquired in new condition); an allowance for accumulated depreciation was deducted based on the estimated age of the mining equipment at the date of acquisition.