From last 10 K:
B. Debt Securities, Including Promissory and Convertible Notes
Use the chart and additional space below to list and describe all outstanding promissory notes, convertible notes,
convertible debentures, or any other debt instruments that may be converted into a class of the issuer’s equity securities.
Check this box if there are no outstanding promissory, convertible notes or debt arrangements: ?
Date of
Note
Issuance
Outstanding
Balance ($)
Principal
Amount
at
Issuance
($)
Interest
Accrued
($)
Maturity
Date
Conversion Terms (e.g.
pricing mechanism for
determining conversion of
instrument to shares)
Name of Noteholder
(entities must have
individual with voting
/ investment control
disclosed).
Reason for
Issuance (e.g.
Loan, Services,
etc.)
03-06-
2020
75730 75730 623* 12-20-
2022*
Straight Debt Xtra Crypto Mining
Inc, Paul Knudson
Purchase &
Install 37
T17s
XTRA Bitcoin Inc. – CBTC has no parent or subsidiaries. It is affiliated to other companies owned or controlled by its
CEO/Director Paul Knudson. These affiliated companies are Protocall Technologies Inc, Xtra Crypto Mining Inc., The
Pines Townhomes LLC, Austin Homes LLC, and T&L Transport LLC.
C. Describe the issuers’ principal products or services, and their markets
Computer validation of bitcoin blockchain, aka “mining”, via Internet worldwide through mining pool.
The goal of this section is to provide a potential investor with a clear understanding of all assets, properties or facilities
owned, used or leased by the issuer.
The Pines Townhomes LLC, a privately held company owned by XTRA’s CEO/Director Paul Knudson, is re-purposing a
self-storage facility located in Ontario, OR, USA into a data center with 7MW of electrical capacity in phase one and an
additional 8MW in phase 2. XTRA Bitcoin Inc. has acquired 5-year leases on building space known as Wonka #5 and
Wonka #6. Each lease consists of six storage units combined into a 900 square foot unit and the right to access 1.25MW
electricity primary on site. XTRA is obligated to pay all costs to install the high-voltage primary, transformers, metering and
secondary distribution electrical systems from utility interconnect onsite to their equipment. XTRA also has a performancebased option to acquire access to an additional 7.5MW electricity for expansion at this site. This site’s location is Ontario,
Oregon, USA. Facility is inside a security fenced property. XTRA is in the development process of raising capital to install
the electrical system and to purchase energy-efficient ASIC miners.
XTRA Bitcoin Inc. – CBTC acquired 70% of RINK facility, phase 1 electrical capacity lease located in Manitoba, Canada
from Xtra Crypto Mining, Inc., a privately held cororation owned by XTRA’s CEO/Director Paul Knudson. RINK is capable
of hosting 37 T17s miners. XTRA is obligated to pay 70% of NNN expenses and $490.00 monthly rent. XTRA, also,
acquired option on 70% of an additional 1.5 MW future electrical capacity upgrade. RINK acquisition was financed by Xtra
Crypto Mining, Inc. XTRA’s 37 T17 miners have been received at the RINK facility but due to covid 19 restrictions,
XTRA’s personnel have been unable to travel to Canada to remodel the facility for mining. It is hoped that travel
restrictions will be lifted soon.
XTRA Bitcoin Inc has arranged a 6-month hosting contract for their miners with a 3rd Party provider in Manitoba, Canada
to work around the covid 19 travel and access restrictions that are delaying completion of RINK facility. Mining began on
December 20, 2020.
In responding to this item, please clearly describe the assets, properties or facilities of the issuer, give the location of the
principal plants and other property of the issuer and describe the condition of the properties. If the issuer does not have
complete ownership or control of the property (for example, if others also own the property or if there is a mortgage on the
property), describe the limitations on the ownership.
If the issuer leases any assets, properties or facilities, clearly describe them as above and the terms of their leases.
Leased facilities: Wonka #5 and Wonka #6. Each unit’s lease rate is $345/month as storage units to reserve the space
and allocation of electrical power capacity. Lease rate increases to $4,855/month NNN when the primary power is
extended to the unit by either party. As of January 1, 2020, Company obtained the right, but not the obligation, to lease
Wonka #3 and Wonka #4 by assuming each unit’s lease from The Pines Townhomes LLC at rate of $345/month as
storage units to reserve the space and allocation of electrical power capacity from Protocall Technologies Incorporated.
NOTE 4 – LEASES, PLANT AND EQUIPMENT
Company has leased 2.5MW capacity and facilities and is raising funding to develop a 10MW bitcoin
mining facility in 2.5MW phases.
Plant and equipment on December 31, 2019 consist of the following:
Prepaid Rent Lease ROU Lease liability Bal
1.25MW Wonka #5 leasehold ROU with $116,520 $291,300 $174,780
1.25MW Wonka #6 leasehold ROU with prepaid rent of $116,520 $291,300 $174,780
2.5MW leasehold ROU Total $233,040 $582,600 $349,560
Option lease additional 7.5MW at Wonka data center. $0.00 $1,747,800 $1,747,800
In the June 25, 2019 merger, Company acquired 2MW of right-of-use (ROU) assets under operating
leases for property of $466,080 and operating lease liabilities of $291,511,34.
On July 1, 2019, Company negotiated an increase to 2.5MW for $58,471.34 for ROU of $582,600 and
operating lease liabilities of $349,560.00 and the option to lease up to an additional 7.5MW on the same
terms. The lease liabilities will commence upon installation of the electrical infrastructure and will
continue for a period of 5 years. Company pays a nominal monthly storage unit rental rate to reserve
leasehold until primary electrical infrastructure is installed to the unit. Company is responsible for the
cost of the electrical infrastructure.
As of January 1, 2020, Company obtained the right, but not the obligation, to lease Wonka #3 and
Wonka #4 by assuming each unit’s lease from The Pines Townhomes LLC at rate of $345/month as
XTRA BITCOIN INC. (CBTC)
Notes to Financial Statements
For Year Ended December 31, 2020
Unaudited
8
storage units to reserve the space and allocation of electrical power capacity from Protocall
Technologies Incorporated.
On March 6, 2020, XTRA Bitcoin Inc entered into an agreement to acquire 70% of the RINK, phase 1 mining facility electrical capacity from Xtra Crypto Mining Inc (XCrypto) and contracted to purchase 37 new Antminer T 17 55 TH/s ASIC miners. This acquistion will allow XTRA to begin mining while raising funding for its larger Wonka mine project. The new Antminer T17s are expected to ship from Bitmain in China and arrive in late March 2020. Installation and mining are expected by middle of April 2020. Lease start date was tolled from April 1, 2020 to June 1, 2020 due to delays caused by covid-19.
RINK leasehold Start date Lease Term Rate ROU asset Paid to Date ROU Liability Balance
6-1-2020 60 months $490 29400 3430 25970
See Note 7 – Related Party Transactions and Note 11 - Subsequent Events.
Hosting Agreement: On December 16, 2020, XTRA entered into a 6 month hosting agreement with Manitoba Corporation named 10019758 Manitoba Ltd for the 46 new Antminer T17 55 TH/s miners purchased by Xtra Crypto Mining Inc, of which, XTRA Bitcoin Inc contracted for 37 miners (80.435% of their collective mining hash) and Xtra Crypto retained 9 miners (19.565% of their collective mining hash).
Their staff took possession of the miners and transported them to their facility for installation. Terms of the hosting agreement are as follows: From all bitcoin earnings, the electricity bill is deducted and then 20% of the remaining bitcoin earnings are paid for the hosting service. Mining began on December 23, 2020. As of December 31, 2020, XTRA’s miners have generated $3,901.45 in revenue.
NOW THIS IS HUGE!!! Almost 4.000$ in revenues just in one week...and they are just starting and BITCOIN is exploding!!!
Convertible Notes Payable
As of December 31, 2020, the Company has zero convertible note debt outstanding.
On May 14, 2019, the Company negotiated an exchange of $145,251.85 outstanding notes and
$708,823.16 convertible notes payable into a new $854,075.01 non-convertible 10% Note, designated
“Note 10”. See Preferred Series E stock above.
As of May 14, 2019, the Company has zero convertible note debt outstanding.
On October 16, 2019, the Company obligated itself to issue 1,000,000 shares of Preferred Series E stock
in exchange for the conversion of $1,000,000 of outstanding debts into 1,000,000 shares of Preferred
Series E stock. Note 10 and Note 6 were included in this conversion which eliminated the Company’s
obligation to pay accruing interest on these note
AI
