Summary of Significant Accounting Policies (Tables)
|
9 Months Ended |
12 Months Ended |
Dec. 31, 2019 |
Mar. 31, 2020 |
| Accounting Policies [Abstract] |
|
|
| Schedule of Exchange Rates |
The following rates were used to translate
the accounts of Kuvera France S.A.S. and Kuvera LATAM S.A.S. into USD at the following balance sheet dates.
| |
|
December 31, 2019 |
|
|
March 31, 2019 |
|
| Euro to USD |
|
|
1.12165 |
|
|
|
1.12200 |
|
| Colombian Peso to USD |
|
|
n/a |
|
|
|
0.00031 |
|
The following rates were used to translate
the accounts of Kuvera France S.A.S. and Kuvera LATAM S.A.S. into USD for the following operating periods.
| |
|
Nine Months Ended December 31, |
|
| |
|
2019 |
|
|
2018 |
|
| Euro to USD |
|
|
1.11443 |
|
|
|
n/a |
|
| Colombian Peso to USD |
|
|
n/a |
|
|
|
0.00034 |
|
|
The following rates were used to translate
the accounts of Kuvera France S.A.S. and Kuvera LATAM S.A.S. into USD at the following balance sheet dates.
| |
|
March 31, 2020 |
|
|
March 31, 2019 |
|
| Euro to USD |
|
|
1.10314 |
|
|
|
1.12200 |
|
| Colombian Peso to USD |
|
|
n/a |
|
|
|
0.00031 |
|
The following rates were used to translate
the accounts of Kuvera France S.A.S. and Kuvera LATAM S.A.S. into USD for the following operating periods:
| |
|
Year ended March 31, |
|
| |
|
2020 |
|
|
2019 |
|
| Euro to USD |
|
|
1.11122 |
|
|
|
1.13580 |
|
| Colombian Peso to USD |
|
|
n/a |
|
|
|
0.00033 |
|
|
| Schedule of Fixed Assets |
As of December 31, 2019 fixed assets were made
up of the following:
| |
|
Estimated |
|
|
|
|
| |
|
Useful |
|
|
|
|
| |
|
Life |
|
|
|
|
| |
|
(years) |
|
|
Value |
|
| Furniture, fixtures, and equipment |
|
|
10 |
|
|
$ |
11,372 |
|
| Computer equipment |
|
|
3 |
|
|
|
19,533 |
|
| Data processing equipment |
|
|
3 |
|
|
|
4,166,470 |
|
| |
|
|
|
|
|
|
4,197,375 |
|
| Accumulated amortization as of December 31, 2019 |
|
|
|
|
|
|
(333,034 |
) |
| Net book value, December 31, 2019 |
|
|
|
|
|
$ |
3,864,341 |
|
|
As of March 31, 2020 and 2019 fixed assets
were made up of the following:
| |
|
Estimated |
|
|
|
|
|
|
|
| |
|
Useful |
|
|
|
|
|
|
|
| |
|
Life |
|
|
March 31, |
|
|
March 31, |
|
| |
|
(years) |
|
|
2020 |
|
|
2019 |
|
| Furniture, fixtures, and equipment |
|
10 |
|
|
$ |
12,792 |
|
|
$ |
11,372 |
|
| Computer equipment |
|
3 |
|
|
|
19,533 |
|
|
|
14,661 |
|
| Data processing equipment |
|
3 |
|
|
|
3,213,815 |
|
|
|
- |
|
| |
|
|
|
|
|
3,246,140 |
|
|
|
26,033 |
|
| Accumulated amortization |
|
|
|
|
|
(248,529 |
) |
|
|
(12,505 |
) |
| Net book value |
|
|
|
|
$ |
2,997,611 |
|
|
$ |
13,528 |
|
|
| Schedule of Long-Lived Assets |
During the nine months ended December 31, 2019
we impaired the value of the customer contracts/relationships originally acquired.
| |
|
Estimated |
|
|
|
|
| |
|
Useful |
|
|
|
|
| |
|
Life |
|
|
|
|
| |
|
(years) |
|
|
Value |
|
| FireFan mobile application |
|
|
4 |
|
|
$ |
331,000 |
|
| Back office software |
|
|
10 |
|
|
|
408,000 |
|
| Tradename/trademark - FireFan |
|
|
5 |
|
|
|
248,000 |
|
| Tradename/trademark - United Games |
|
|
0.45 |
|
|
|
4,000 |
|
| Customer contracts/relationships |
|
|
n/a |
|
|
|
- |
|
| |
|
|
|
|
|
|
991,000 |
|
| Accumulated amortization as of December 31, 2019 |
|
|
|
|
|
|
(254,949 |
) |
| Net book value, December 31, 2019 |
|
|
|
|
|
$ |
736,051 |
|
|
As of March 31, 2020 and 2019 intangible assets
were made up of the following:
| |
|
Estimated |
|
|
|
|
|
|
|
| |
|
Useful |
|
|
|
|
|
|
|
| |
|
Life |
|
|
March 31, |
|
|
March 31, |
|
| |
|
(years) |
|
|
2020 |
|
|
2019 |
|
| FireFan mobile application |
|
4 |
|
|
$ |
331,000 |
|
|
$ |
331,000 |
|
| Back office software |
|
10 |
|
|
|
408,000 |
|
|
|
408,000 |
|
| Tradename/trademark - FireFan |
|
5 |
|
|
|
248,000 |
|
|
|
248,000 |
|
| Tradename/trademark - United Games |
|
0.45 |
|
|
|
4,000 |
|
|
|
4,000 |
|
| Customer contracts/relationships |
|
5 |
|
|
|
- |
|
|
|
825,000 |
|
| |
|
|
|
|
|
991,000 |
|
|
|
1,816,000 |
|
| Accumulated amortization |
|
|
|
|
|
(298,118 |
) |
|
|
(239,315 |
) |
| Net book value |
|
|
|
|
$ |
692,882 |
|
|
$ |
1,576,685 |
|
|
| Schedule of Amortization Expense |
Amortization expense is expected to be as follows:
| Remainder of 2020 |
|
$ |
43,169 |
|
| Fiscal year ending March 31, 2021 |
|
|
173,150 |
|
| Fiscal year ending March 31, 2022 |
|
|
173,150 |
|
| Fiscal year ending March 31, 2023 |
|
|
115,338 |
|
| Fiscal year ending March 31, 2024 |
|
|
55,748 |
|
| Fiscal year ending March 31, 2025 and beyond |
|
|
175,496 |
|
| |
|
$ |
736,051 |
|
|
Amortization expense is expected to be as follows:
| Fiscal year ending March 31, 2021 |
|
$ |
173,150 |
|
| Fiscal year ending March 31, 2022 |
|
|
173,150 |
|
| Fiscal year ending March 31, 2023 |
|
|
115,338 |
|
| Fiscal year ending March 31, 2024 |
|
|
55,748 |
|
| Fiscal year ending March 31, 2025 and beyond |
|
|
175,496 |
|
| |
|
$ |
692,882 |
|
|
| Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis |
Items recorded or measured at fair value on
a recurring basis in the accompanying consolidated financial statements consisted of the following items as of December 31, 2019:
| |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
| Cryptocurrencies |
|
$ |
156,448 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
156,448 |
|
| Total Assets |
|
$ |
156,448 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
156,448 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Derivative liability |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
383,670 |
|
|
$ |
383,670 |
|
| Total Liabilities |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
383,670 |
|
|
$ |
383,670 |
|
Items recorded or measured at fair value on
a recurring basis in the accompanying consolidated financial statements consisted of the following items as of March 31, 2019:
| |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
| Cryptocurrencies |
|
$ |
142,061 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
142,061 |
|
| Total Assets |
|
$ |
142,061 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
142,061 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Derivative liability |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
1,358,901 |
|
|
$ |
1,358,901 |
|
| Total Liabilities |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
1,358,901 |
|
|
$ |
1,358,901 |
|
|
Items recorded or measured at fair value on
a recurring basis in the accompanying consolidated financial statements consisted of the following items as of March 31, 2020:
| |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
| Cryptocurrencies |
|
$ |
101,610 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
101,610 |
|
| Total Assets |
|
$ |
101,610 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
101,610 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Derivative liability |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
793,495 |
|
|
$ |
793,495 |
|
| Total Liabilities |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
793,495 |
|
|
$ |
793,495 |
|
Items recorded or measured at fair value on
a recurring basis in the accompanying consolidated financial statements consisted of the following items as of March 31, 2019:
| |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
| Cryptocurrencies |
|
$ |
142,061 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
142,061 |
|
| Total Assets |
|
$ |
142,061 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
142,061 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Derivative liability |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
1,358,901 |
|
|
$ |
1,358,901 |
|
| Total Liabilities |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
1,358,901 |
|
|
$ |
1,358,901 |
|
|
| Schedule of Sale and Leaseback Transactions |
|
| Fiscal year ending March 31, 2021 |
|
$ |
8,081,463 |
|
| Fiscal year ending March 31, 2022 |
|
|
8,158,547 |
|
| Fiscal year ending March 31, 2023 |
|
|
8,158,547 |
|
| Fiscal year ending March 31, 2024 |
|
|
8,158,547 |
|
| Fiscal year ending March 31, 2025 and beyond |
|
|
5,978,232 |
|
| |
|
$ |
38,535,336 |
|
|
| Summary of Activity Related to Sale and Leaseback Transactions |
During the nine months ended December 31, 2019
we had the following activity related to our sale and leaseback transactions:
| Proceeds from sales of APEX |
|
$ |
9,693,141 |
|
| Interest recognized on financial liability |
|
|
877,352 |
|
| Payments made for leased equipment |
|
|
(1,341,100 |
) |
| Total financial liability |
|
|
9,229,393 |
|
| Other current liabilities [1] |
|
|
(7,576,800 |
) |
| Other long-term liabilities |
|
$ |
1,652,593 |
|
[1] Represents lease payments to be made in
the next 12 months
|
During the year ended March 31, 2020 we had
the following activity related to our sale and leaseback transactions:
| Proceeds from sales of APEX |
|
$ |
16,143,265 |
|
| Debt extinguished with the issuance of APEX |
|
|
100,000 |
|
| Interest recognized on financial liability |
|
|
2,257,399 |
|
| Payments made for leased equipment |
|
|
(3,208,000 |
) |
| Total financial liability |
|
|
15,292,664 |
|
| Other current liabilities [1] |
|
|
(11,407,200 |
) |
| Other long-term liabilities, net of deferred interest |
|
$ |
3,885,464 |
|
[1] Represents lease payments to be made in
the next 12 months
|
| Schedule of Revenue Generated |
Revenue generated for the nine months ended
December 31, 2019 is as follows:
| |
|
Subscription
Revenue |
|
|
Equipment Sales |
|
|
Cryptocurrency
Mining Service
Revenue |
|
|
Mining Revenue |
|
|
Fee Revenue |
|
|
Total |
|
| Gross billings/receipts |
|
$ |
21,214,747 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
380,871 |
|
|
$ |
9,486 |
|
|
$ |
21,605,104 |
|
| Refunds, incentives, credits, and chargebacks |
|
|
(1,887,656 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,887,656 |
) |
| Amounts paid to supplier |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Net revenue |
|
$ |
19,327,091 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
380,871 |
|
|
$ |
9,486 |
|
|
$ |
19,717,448 |
|
Revenue generated for the nine months ended
December 31, 2018 is as follows:
| |
|
Subscription
Revenue |
|
|
Equipment Sales |
|
|
Cryptocurrency Mining Service Revenue |
|
|
Mining Revenue |
|
|
Fee Revenue |
|
|
Total |
|
| Gross billings/receipts |
|
$ |
21,882,005 |
|
|
$ |
698,954 |
|
|
$ |
5,690,380 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
28,271,389 |
|
| Refunds, incentives, credits, and chargebacks |
|
|
(1,047,007 |
) |
|
|
(4,000 |
) |
|
|
(6,501 |
) |
|
|
- |
|
|
|
- |
|
|
|
(1,057,508 |
) |
| Amounts paid to supplier |
|
|
- |
|
|
|
- |
|
|
|
(3,871,278 |
) |
|
|
- |
|
|
|
- |
|
|
|
(3,871,278 |
|
| Net revenue |
|
$ |
20,835,048 |
|
|
$ |
694,954 |
|
|
$ |
1,812,601 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
23,342,603 |
|
Revenue generated for the three months ended
December 31, 2019 is as follows:
| |
|
Subscription
Revenue |
|
|
Equipment Sales |
|
|
Cryptocurrency Mining Service Revenue |
|
|
Mining Revenue |
|
|
Fee Revenue |
|
|
Total |
|
| Gross billings/receipts |
|
$ |
5,096,886 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
380,871 |
|
|
$ |
4,117 |
|
|
$ |
5,481,874 |
|
| Refunds, incentives, credits, and chargebacks |
|
|
(518,263 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(518,263 |
) |
| Amounts paid to supplier |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Net revenue |
|
$ |
4,578,623 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
380,871 |
|
|
$ |
4,117 |
|
|
$ |
4,963,611 |
|
Revenue generated for the three months ended
December 31, 2018 is as follows:
| |
|
Subscription
Revenue |
|
|
Equipment Sales |
|
|
Cryptocurrency Mining Service Revenue |
|
|
Mining Revenue |
|
|
Fee Revenue |
|
|
Total |
|
| Gross billings/receipts |
|
$ |
7,204,415 |
|
|
$ |
698,954 |
|
|
$ |
40,779 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
7,944,148 |
|
| Refunds, incentives, credits, and chargebacks |
|
|
(200,613 |
) |
|
|
(4,000 |
) |
|
|
(6,501 |
) |
|
|
- |
|
|
|
- |
|
|
|
(211,114 |
) |
| Amounts paid to supplier |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Net revenue |
|
$ |
7,003,802 |
|
|
$ |
694,954 |
|
|
$ |
34,278 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
7,773,034 |
|
|
Revenue generated for the year ended March
31, 2020, was as follows:
| |
|
Subscription Revenue |
|
|
Equipment
Sales |
|
|
Cryptocurrency Mining Service Revenue |
|
|
Mining Revenue |
|
|
Fee Revenue |
|
|
Total |
|
| Gross billings/receipts |
|
$ |
24,471,532 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
1,745,138 |
|
|
$ |
13,279 |
|
|
$ |
26,229,949 |
|
| Refunds, incentives, credits, and chargebacks |
|
|
(2,046,359 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(2,046,359 |
) |
| Amounts paid to supplier |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Net revenue |
|
$ |
22,425,173 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
1,745,138 |
|
|
$ |
13,279 |
|
|
$ |
24,183,590 |
|
Revenue generated for the year ended March
31, 2019 was as follows:
| |
|
Subscription Revenue |
|
|
Equipment
Sales |
|
|
Cryptocurrency Mining Service Revenue |
|
|
Mining Revenue |
|
|
Fee Revenue |
|
|
Total |
|
| Gross billings/receipts |
|
$ |
28,518,660 |
|
|
$ |
698,954 |
|
|
$ |
5,775,269 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
34,992,883 |
|
| Refunds, incentives, credits, and chargebacks |
|
|
(1,495,458 |
) |
|
|
(4,000 |
) |
|
|
(6,501 |
) |
|
|
- |
|
|
|
- |
|
|
|
(1,505,959 |
) |
| Amounts paid to supplier |
|
|
- |
|
|
|
- |
|
|
|
(3,827,843 |
) |
|
|
- |
|
|
|
- |
|
|
|
(3,827,843 |
) |
| Net revenue |
|
$ |
27,023,202 |
|
|
$ |
694,954 |
|
|
$ |
1,940,925 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
29,659,081 |
|
|
| Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share |
Potentially dilutive securities excluded from
the computation of basic and diluted net loss per share are as follows:
| |
|
December 31, 2019 |
|
|
December 31, 2018 |
|
| Options to purchase common stock |
|
|
- |
|
|
|
35,000 |
|
| Warrants to purchase common stock |
|
|
125,000 |
|
|
|
6,052,497 |
|
| Notes convertible into common stock |
|
|
11,080,447 |
|
|
|
- |
|
| Totals |
|
|
11,205,447 |
|
|
|
6,087,497 |
|
|
Potentially dilutive securities excluded from
the computation of basic and diluted net loss per share are as follows:
| |
|
March 31,
2020 |
|
|
March 31,
2019 |
|
| Options to purchase common stock |
|
|
- |
|
|
|
35,000 |
|
| Warrants to purchase common stock |
|
|
- |
|
|
|
5,052,497 |
|
| Notes convertible into common stock |
|
|
45,743,298 |
|
|
|
52,162,055 |
|
| Total |
|
|
45,743,298 |
|
|
|
57,249,552 |
|
|