1.1 Mission Statement
Nodechain, Inc. (Nodechain) will be a profitable leader in the emerging cryptocurrency
mining and digital currency industry by assembling and configuring proprietary mining
hardware technology, sourcing the lowest hosting and electricity costs and providing the
greatest value and investment opportunities possible for its members. Nodechain will
operate in accordance with all federal and state laws and regulations and will be fully
transparent in its operations to all members. Nodechain will be a champion of
cryptocurrency and emerging blockchain technology and other emerging digital currencies.
With a specialized focus on digital currencies, distributed ledger technology and digital
assets, the company’s core pillars of business are innovation and manufacturing of mining
hardware and operating state of the art mining facilities. Nodechain will donate a small
percentage of profits to charitable organizations accepting bitcoin.
Currently, our mining operations are located in Huntington Beach, CA with plans of
expanding to a more efficient facility out of state.
Our mission is to drive growth to the industry by becoming the leading brand in
cryptocurrency mining and blockchain technology.
1.2 Company Formation
NODECHAIN, INC. (the “Company”) was formed on June 18, 2013, as a Delaware
corporation. At the date of this offering, 79,940,000 Shares of the Company’s voting
Common Stock were authorized, issued and outstanding and a total of 62,990,000 shares
restricted. The Company is in the business of mining and staking cryptocurrencies and is
engaged in the blockchain sector and graphical processing unit (GPU) cryptocurrency
mining.
The Company is focused on mining Bitcoin and Ethereum. The Company stores its mined
Bitcoin and Ethereum in cold storage wallets by using the cold storage wallet system. Its
mining rigs are capable of mining alternative cryptocurrencies, such as Zcash and Ethereum
Classic, Bitcoin Gold and privacy coin Monero.
1.3 The Company Basic Strategy
Nodechain is a publicly traded company on the OTC Markets, with the ticker symbol:
VPTK. Our current business operations are comprised of activities revolving around the
blockchain, with a particular emphasis on digital cryptocurrency mining and transaction
validation. We specialize in configuring and operating high-performance computers which
validate the transfers of mineable cryptocurrencies, thus collecting the fees associated with
P2P transfers. Nodechain is currently focused on mining Ethereum and Bitcoin.
In the future, the Company will focus on investing in additional cryptocurrency mining rig
computers in order to scale our operations and increase cash flow. Our goal is to obtain 250
mining rigs by the end of the second quarter, 2018. Nodechain intends to expand its
operations into different sectors related to the blockchain including, but not strictly limited
to, dynamic cryptocurrency mining applications, blockchain applications, solidity smart
contract development, cryptocurrency hashpower leasing, sales, service and B2B
cryptocurrency consultation.
1.4 Products/ Services
Nodechain is a Bitcoin and Ethereum mining company. Nodechain business model
emphasizes digital cryptocurrency mining. Nodechain’s transaction validation utilizing
blockchain, also provides its transaction processing power to the bitcoin network in return
for compensation. Nodechain does not require a high overhead of large management or
employees, instead can be streamlined and utilizes technology to stay a very cost-effective
business. Nodechain invests in high power computers and hosts them in contracted data
centers. These computers process transactions on the cryptocurrency network and generate
revenue for the company.
2. COMPANY MANAGEMENT TEAM
2.1 Principal Members
Michael Ibrahim – CEO and President, Age 43
Our Chief Executive Officer Andy Michael Ibrahim has more than 15 years-experience in trade
show marketing, branding, from product development to fulfillment. Since 2002, he has been
with Creative Art Center, Inc. to expand marketing practices to other companies that can benefit
from our teams proven marketing strategies and to increase revenue and grow market share. He
continues to lead and direct these brands to expand their businessmen by web advertising, print
and exhibiting in trade shows worldwide. Mr. Ibrahim worked from 1999 to 2002 as the
marketing director for Affiliated Funding Corp. Mr. Ibrahim managed a team of mortgage
consultants and successfully acquired more than $100M in business per year from licensed active
Realtors Nationwide. During this time Mr. Ibrahim executed a marketing plan that captured the
market share of many top leading corresponding lenders. Mr. Ibrahim managed a team of
designers and production specialist to create, produce, market and distribute an international
brand-named Shaolin Clothing from 1995 to 1999. In that capacity, Mr. Ibrahim successfully
negotiated and the implemented the acquisition of other brands to create a distribution company
to add value with brand names for the distribution. During this time He managed and organized
many trade show events nationwide and product exhibits. Mr. Ibrahim helped the distribution be
acquired to Global World Industries.
Mr. Ibrahim has been a Director and CEO of Nodechain, Inc. since March 6, 2014. Mr. Ibrahim
attended University of Phoenix from 1999 to 2002 and also graduated from Orange Coast
College with an emphasis in Business Marketing.
Alham Benyameen, COO/ Chairman, Age 40
Mr. Benyameen is the Co-President of West Coast Vape Supply Inc., with Andy Michael
Ibrahim, an international distributor to retail locations supplying the vaping industry with high
quality brand names. Through their leadership, West Coast Vape Supply Inc. has grown into one
of the leading distributors of vape supply companies engaged in both the distribution and
creation of innovative products for the emerging vaporizer industry. Mr. Benyameen and Mr.
Ibrahim grew the company’s revenues to over $5M in gross sales over a period of 2 years. Mr.
Benyameen also is currently the President and CEO of MeWe World, Inc an online retailer of
consumer electronics with 7 employees, which was recently honored by inclusion in the 2008-
2011 editions of Internet Retailer’s Top 500 Guide. Mr. Benyameen grew the company’s
revenues from $50,000 to over $24M in over a period of 2 years. Mr. Benyameen is also the
President of Pennygrab, Inc., an online pay to bid auction website, Pennygrab, Inc. which
generated over $3M in sales in 2013 and 2014. From 1999 to 2001 Mr. Benyameen worked as a
sales manager for Atek, Inc. responsible for obtaining profitable results through the sales team by
developing the team through motivation, counseling, skills development and product knowledge
development. From 1997 to 1999, Mr. Benyameen worked as a sales associate for Bit-By-Bit
Computer Rental, one of the largest computer equipment rental companies in Southern
California.
Mr. Benyameen continues to identify and generate online sales leads for new business through
the use of his self-generated proprietary social media software tools, test marketing analytical
tools, proprietary ecommerce solutions technology related to apps/websites, such as: CSS,
JavaScript (Angular.js, Express.js, node.js, ReactJS, etc.), iOS/Android, PHP, Java, Litespeed,
Elasticsearch and more.
Mr. Benyameen has extensive cryptocurrency knowledge since the beginning of 2017,
specializing in digital asset mining and building a cryptocurrency mining farms. Currently Mr.
Benyameen owns and manages fifty cryptocurrency mining computers/rigs and owns proprietary
software that dynamically chooses the most efficient mining pools that are capable of mining
Bitcoin, Bitcoin Gold, Electroneum, Ethereum, Ethereum Classic, Monero, Siacoin UBIQ and
Zcash.
The cryptocurrency market is growing rapidly due to people’s strong enthusiasm in the digital
currencies. Currently the total market capitalization of all cryptocurrencies stands at:
$627,560,091,788 / with an average 24h Vol: $51,294,065,447. The cryptocurrency market is
segmented into peer-to-peer payment, remittance, e-commerce and retail, media and
entertainment, and others on the basis of end users. The report indicated that peer-to-peer
payment segment held the largest market share in 2016, due to the surge in cryptocurrencies’
price since 2014.
2.2 Active Board Members
Nodechain Board of Directors will take an active role in providing direct assistance with
management of certain aspects of the business. Nodechain has taken the approach to fully
utilize and compensate its Board.
Directors and Other Management
Phillip M. Nuciola, Age 47
Mr.Phillip M. Nuciola has been an Advisor to the Board of Power One Data International Inc.
since July 25, 2013. He has served as a Consultant of Core Resource Management, Inc. since
January, 2014. Mr. Nuciola has served as the President of Capital Markets at Core Resource
Management, Inc. since January, 2014. Mr. Nuciola served as the Chairman of the Board and
Chief Executive Officer and President of Power One Data International Inc. from December
2010 to July, 2014. He maintained senior positions at Cornerstone Partners, Kingsman Capital,
Arizona Capital, American Freedom Securities, Sanders, Morris, & Harris and Scottsdale Capital
Advisors.
Mr. Nuciola was the Primary Investment Banker for P1D since its inception in 2001, raising over
$30 million for it. Mr. Nuciola has organized resources, structured and financed numerous Initial
Public Offerings and private placements over his 26 year career. He served as the Chairman of
the Board and Director of Core Resource Management, Inc. from January 01, 2014 to March,
2015. He served as a Director at PowerOneData International from December 2010 to January
2014 Mr. Nuciola attended the University of Rochester.
David Kim, Age 35
From December 2016 to December 2017 Mr. David Young Kim was a Senior Sales Agent at
LoanMe Inc. From July 2002 to June 2005 he worked as a Senior Sales Agent for CashCall.
Additionally, Mr. Kim worked for OneStop Internal Systems as a Manager between February
2008 and March 2012. Mr. Kim is a veteran of finance with over 12 years of comprehensive
experience in the lending industry, ranging from consumer and commercial loans to his current
role as a full-time technical analyst. Mr. Kim, independently, has investments and experience in
cryptocurrency mining and blockchain technology dating back to 2013.
Youssef Hanine, Age 30
From January 2012 to April 2017 Youssef Hanine worked as a National Account Manager and
Project Development Manager at First Financial. Mr. Hanine, independently, has investments
and experience in cryptocurrency mining and blockchain technology dating back to 2017.
The management team may be further developed and expanded with
qualified and experienced executives, professionals and consultants, as the Company
matures and grows.
3. MARKET RESEARCH
3.1 Industry
Cryptocurrency mining in its simplest term is the practice of adding transaction records to
cryptocurrencies public ledger of previous transactions or block chain. This ledger of
previous transactions is called the block chain as it is a chain of blocks. The block chain
serves to confirm transactions to the rest of the network as having taken place. As a matter
of fact, cryptocurrency miners help keep the Nodechain network secure by approving
transactions. Mining is indeed an important and integral part of Nodechain that ensures
fairness while keeping the Nodechain network stable, safe and highly secured.
In addition, cryptocurrency mining as the name implies is similar to the mining of other
commodities: it requires deliberate and calculated effort and it slowly makes new currency
available at a rate that look like the rate at which commodities like gold and copper et al are
mined from the ground. Mining is also the mechanism used to introduce cryptocurrency into
the system: Miners are paid transaction fees as well as a “subsidy” for newly created coins
or, each transaction that takes place.
Cryptocurrency is a type of digital currency that is created and held electronically; it is a
digital payment system that is invented by an unknown programmer, or perhaps a group of
programmers. No one controls it. Unlike Dollars, Euros, Pounds and other currencies
cryptocurrency is not printed, but produced by people using software that solves
mathematical problems.
The cryptocurrency and a digital payment system industry is indeed a large internet based
industry that is active in a lot of countries. Despite the fact that cryptocurrency mining is
still a green business, the business will continue to blossom because more and more users
will embrace the use of this type of currency in the nearest future. Some barriers to entry
include professional management team, advanced mathematical algorithm analysis,
advanced knowledge of the cryptocurrency marketplace, educated cost analysis to purchase
and build the best technological systems and management them effectively. Nodechain Inc.
possesses these skill sets and knowledge.
3.2 Cost Benefit Analysis
Benefits and Challenges with Implementation of Blockchain Technology:
BENEFITS OF SECTOR PARTICIPATION
Disintermediation & trustless exchange
Two parties are able to make an exchange without the oversight or intermediation of a third
party, eliminating the counterparty risk, Empowered users
Users are in control of all their information and transactions High quality data Blockchain
data is complete, consistent, timely, accurate, and widely available.
Durability, reliability, and longevity
Due to the decentralized networks, blockchain does not have a central point of failure and
is better able to withstand malicious attacks.
Process integrity
Users can trust that transactions will be executed exactly as the protocol commands
removing the need of a trusted third party.
Transparency and immutability
Changes to public blockchains are publicly viewable by all parties creating transparency,
and can never be altered or deleted, therefore creating immutability.
Ecosystem simplification
With all transactions being added to a single public ledger, it reduces the clutter and
complications of multiple ledgers.
Faster interbank clearing and settlement
Previously banks and financial institutions would have to wait days for securities to clear;
blockchain shortens this process to minutes.
Lower transaction costs
By eliminating the need of a third-party intermediary, users are able to exchange assets
without paying a transaction fee.
CHALLENGES OF SECTOR PARTICIPATION
Nascent technology
Resolving challenges such as transaction speed, the verification process, and data limits
will be crucial in making blockchain widely applicable.
Uncertain regulatory status
Because modern currencies have always been created and regulated by national
governments, blockchain and Bitcoin face a hurdle in widespread adoption by pre-existing
financial institutions if its government regulation status remains unsettled.
Large energy consumption
The Bitcoin blockchain network’s miners are attempting 450 thousand trillion solutions per
second in efforts to validate transactions, using substantial amounts of computer power.
Control, security, and privacy
While some solutions exist, including private or permissioned blockchains, there are still
cybersecurity concerns.
Integration concerns
Blockchain applications offer solutions that require significant changes to, or complete
replacement of, existing systems. In order to make the switch, companies must strategize
the transition.
Cultural adoption
Blockchain represents a complete shift to a decentralized network which requires the buyin
of its users and operators.
Cost Basis
Blockchain offers tremendous savings in transaction costs and time but the high initial
capital costs could be a deterrent.
Company Cost/ Benefit Analysis of sector participation
Nodechain, Inc. believes they are suited to hedge against the Challenges and thrive on the
benefits. A careful analysis and plan was put into place before launching into this business
sector. Management believes that, execution of this plan is already providing the expected
results. Growth by expanding the number of “mining rigs” put online will only accelerate
this growth. Management will utilize the fund proceeds from this offering to do exactly that
type of expansion and scale to a level which management believes will yield significant
returns on capital.
3.3 Competitors
Cryptocurrency is based on cryptographic algorithms which are encrypted. This encryption
makes currency decentralized and thereby gives ownership to the specific user. This type of
currency restricts the chances of fraud and identity theft making it a safer alternative to
holding money. Cryptocurrency allows users to exchange their values without intermediates
as well as being less volatile than cash which creates an easier access to making transactions
across boundaries as well as online. In addition, this type of currency is also very trackable
while cash currency is nearly impossible to track.
Some of Nodechain’s major competitors include Ethereum (ETH) which launched in 2015
and is a decentralized software platform that enables Smart Contracts and Distributed
Applications to be built and run without any downtime, fraud, controls or interferences from
a third party. Bitcoin (BTC) also uses no central authority or banks and managing
transactions and issuing of the bitcoin themselves are carried out by the network.
3.4 Competitive Advantage
Nodechain GPU Mining Advantages:
Multiple Algorithm Mineable
It can mine any type of cryptocurrency and is compatible with every algorithm.
General Purpose Computing Power
From mining to Artificial Intelligence, GPU excels at complex computations, no matter the type.
It can virtually mine all cryptocurrencies.
Easily Sourced
Only AMD and NVIDIA design GPUs, many companies such as ASUS. EVGA. and Gigabyte
manufacture and resell GPUs.
Reliability
Reliable. easy to support and maintain and reusable for other purposes
High Resale Value
GPUs can always be resold for a much higher portion of the original value than ASICs
computers.
Upgradable
Bios upgrades are always available, which can make drastic improvements in performance.
In worst case scenario. you can replace each GPU one at a time.
Understanding The Mining Treadmill
Miners compete viciously to get slim margins. They’re glued to the mining treadmill, and the
fastest runners control the speed.
Every time miners figure out how to hash faster, the difficulty increases. When difficulty
increases, each hash becomes less valuable. The hashrate may stay the same but the company
gets paid less and less. Proof of Work mining forces miners to constantly re-invest revenue.
Miners only profit through constant spending, constant optimization, constant competition. If a
miners hashrate falls behind even a little bit they fall behind the pack. Miners that can’t compete
fall off the treadmill.
Nodechain, Inc. GPU computer mining rigs are more efficient, they’ll gain a bigger
Nodechain, Inc GPU Mining rigs are clearly superior to ASIC Mining
GPUs approach limits on memory bandwidth, and ASICs approach physical limits on transistor
size. Right now, GPU mining are the most profitable optimized mining rigs.
If profit margin is 1%, then a 1% decrease in revenue eliminates mining profit. If a miner’s
hashrate falls behind even a little bit, they fall behind the pack. If they’re not careful they’ll end
up falling off the treadmill as it speeds up. On the other hand, a 1% increase in revenue would
double profits. A slightly more efficient miner will have more funds to reinvest in upgraded
hardware. They’ll gain a bigger and bigger edge until other miners just can’t compete.
There are two ways to increase mining profitability: generate more revenue, or reduce expenses.
Revenues comes from block rewards and transaction fees. Expenses come from electricity,
hardware, employees, and warehousing the computer mining rigs.
Upgradeable Mining Rig Hardware
GPU Mining rigs are upgradeable where as ASIC miners are not. This gives Nodechain GPU
computer mining rigs an edge in the long-term strategy of competing with other miners.
3.5 Regulation
Nodechain, Inc is a publicly traded Company on the OTCPK (VPTK). As such, the
Company must complete all filings and maintain all proper regulatory mandates for
Corporate governance and reporting. As such, any non-compliance would put the entire
Company operations at risk.
State regulation also remains an issue for blockchain technology. While a number of
financial regulators, such as the British, German and Irish regulators, have adopted a
progressive frame of mind towards regulating the technology, there remain some concerns
over cybersecurity, money laundering and data protection. For example, the Chinese
government has announced a ban on ICO’s due to a fear that the use of cryptocurrencies is
making it too easy to extract funds from the country.
3. 6 Government Oversight
As cryptocurrency have grown in both popularity and market size, the U.S. Congress and a
number of U.S. federal and state agencies (including FinCEN, SEC, CFTC, FINRA, the Consumer
Financial Protection Bureau (“CFPB”), the Department of Justice, the Department of Homeland
Security, the Federal Bureau of Investigation, the IRS and state financial institution regulators)
have been examining the operations of cryptocurrency, cryptocurrency users and cryptocurrency
exchanges, with particular focus on the extent to which cryptocurrency can be used to launder
the proceeds of illegal activities or fund criminal or terrorist enterprises and the safety and
soundness of exchanges or other service-providers that hold cryptocurrency for users. Many of
these state and federal agencies have issued consumer advisories regarding the risks posed by
cryptocurrency to investors. In addition, Federal and state agencies, and other countries have
issued rules or guidance about the treatment of cryptocurrency transactions or requirements for
businesses engaged in cryptocurrency activity. On-going and future regulatory actions may alter,
perhaps to a materially adverse extent, the nature of an investment in the company or the ability
of the company to continue to operate. Additionally, U.S. state and Federal, and foreign
regulators and legislatures have taken action against cryptocurrency businesses or enacted
restrictive regimes in response to adverse publicity arising from hacks, consumer harm, or
criminal activity stemming from cryptocurrency activity.
Various foreign jurisdictions may, in the near future, adopt laws, regulations or directives that
affect cryptocurrency networks, cryptocurrency wallets, and their users that fall within such
jurisdictions’ regulatory scope. Such laws, regulations, or directives may conflict with those of the
United States and may negatively impact the acceptance of cryptocurrency by users, merchants,
and service providers outside the United States and may therefore impede the growth or
sustainability of the cryptocurrency economy in the European Union, China, Japan, Russia and
the United States and globally, or otherwise negatively affect the value of cryptocurrency.
The effect of any future regulatory change on the company or cryptocurrency is impossible to
predict, but such change could be substantial and adverse to the company.
4. OPERATIONAL PLAN
4.1 Prospects/ Short Term Business Growth
Nodechain, Inc. is engaged in cryptocurrency mining and blockchain technology company
that specializes in Bitcoin and Ethereum mining and capable of mining multiple
cryptocurrencies.
We believe the proprietary cryptocurrency mining rigs that we have been in development
for two (2) years has significantly contributed to the success of our business. We also believe
that maintaining and scaling out our operations is critical to growing a portfolio of
cryptocurrency digital assets. Growth and scalability will require us to make substantial
investments in our proprietary GPU mining rig hardware.
The business is based in Huntington Beach – California. We are aware that running a
standard cryptocurrency mining company can be demanding which is why we equipped to perform
excellently in our unique operation.
Nodechain, Inc. will at all time demonstrate commitment to sustainability, both individually
and as a firm, by integrating sustainable business practices wherever possible.
Nodechain, Inc is positioned to become the leading GPU cryptocurrency mining operation
in North America and also to be amongst the top three (3) Bitcoin and Ethereum mining
operation in the North America within the first 2 years of operation. We are optimistic that
this will surely be realized because we have done our research and feasibility studies and
we are enthusiastic and confident that our propriety GPU based mining rig computers is the
right method for cryptocurrency mining business.
Our Business Structure
Our plan to build hundreds of cryptocurrency mining rig computers, we have perfected plans
to get it right from the beginning. We have competent, honest and hardworking team to
deploy our business plan.
Innovative Aspects of Nodechain, Inc Computer Mining Rigs
Nodechain, Inc builds and configures cutting edge GPU based computer mining rigs. The
GPU mining rigs technology is capable of mining multiple algorithms and cryptocurrencies.
GPU Mining rigs are five (5) times more power efficient than the currently available ASIC
mining hardware and a higher performance-cost ratio than latest ASIC miner hardware. It
is expected that the ASIC mining technology will not improve significantly over the next
four (4) years. However, the costs of ASIC equipment can drop significantly potentially
even to levels of 10% of the current market price within the next few years. This estimation
is based on the costs of fabrication of the ASIC chips.
Nodechain, Inc GPU Mining rigs are clearly superior to ASIC Mining
GPUs approach limits on memory bandwidth, and ASICs approach physical limits on transistor
size. Right now, GPU mining are the most profitable optimized mining rigs.
If profit margin is 1%, then a 1% decrease in revenue eliminates mining profit. If a miner’s
hashrate falls behind even a little bit, they fall behind the pack. If they’re not careful they’ll end
up falling off the treadmill as it speeds up. On the other hand, a 1% increase in revenue would
double profits. A slightly more efficient miner will have more funds to reinvest in upgraded
hardware. They’ll gain a bigger and bigger edge until other miners just can’t compete.
There are two ways to increase mining profitability: generate more revenue, or reduce expenses.
Revenues comes from block rewards and transaction fees. Expenses come from electricity,
hardware, employees, and warehousing the computer mining rigs. GPU Mining rigs are
upgradeable where as ASIC miners are not. This gives Nodechain GPU computer mining rigs an
edge in the long-term strategy of competing with other miners.
Sources of Revenue
The main source of income is the block reward from transaction processing fees on the
Bitcoin and Ethereum blockchain that is collected during the cryptocurrency mining
process.
4.2 Prospects/ Long Term Business Growth
Nodechain, Inc has will make strategic and diversified investments in promising emerging
companies across the blockchain industry, establish a net-long position in various cryptocurrencies
and digital assets from the proceeds of mining.
Hashpower Protocol Development
Nodechain, Inc will develop a software platform that involves buying and leasing hashpower, we
believe this alone is a $1B annual industry. Nodechain will develop a cryptocurrency that will
contribute to the blockchain for the purpose of buying and selling hashpower.
Development of Mining Pools
The significant increase in the number of miners and the increasing in mining capacity have
radically increased the difficulty of finding a valid hash since the first block was mined. In some
respects, hashing is akin to a mathematical lottery, and miners that have devices with greater
processing power (i.e., the ability to make more hash calculations per second) are more likely to
be successful miners. Currently, the likelihood that an individual acting alone will be able to be
awarded a Bitcoin is extremely low. As a result, mining “pools” have developed in which multiple
miners act cohesively and combine their processing power to solve blocks. When a pool solves a
new block, the pool operator receives the Bitcoin and, after taking a nominal fee, splits the resulting
reward among the pool participants based on the processing power they each contributed to solve
for such block. Mining pools provide participants with access to smaller, but steadier and more
frequent, Bitcoin payouts.
Digital Asset Currency Broker
Tapping into digital assets as brokers to move, share, invest and trade digital assets.
Nodechain digital assets under Nodechain custody will be properly controlled and safeguarded for
multiple signers, audit trails. Guaranteed response times to process funds transfers.
We plan to offer support for up to 10 cryptocurrencies including Bitcon, Ethereum, Litecoin, NEM,
NEO, Ripple, Stellar Lumens and more.
4.3 Use of Proceeds from this Offering
PLANNED CAPITALIZATION – DESIRED FUNDING – USE OF PROCEEDS
The Company is seeking $10,000,000 with this offering, in the form of Registered common stock issued in a private placement pursuant to the Securities Act of 1933, to
fund expansion of the mining operation with the addition of 1470 mining rigs.
The Company intends to use the proceeds from equity investments as follows:
Use of Proceeds
GROSS OFFERING $10,000,000.00
LESS ESTIMATED
OFFERING EXPENSES AND
COMMISSIONS $1,000,000.00
NET PROCEEDS $9,000,000.00
PLANNED USES
CAPITAL EXPENDITURES
Computer peripherals $36,750.00
Electrical transformers $50,000.00
Facility $496,000.00
Internet switches $36,750.00
Mining computer rigs $7,056,000.00
POS Masternodes $250,000.00
Server PDUs $106,795.00
Total proceeds for capital
expenditures $8,032,295.00
WORKING CAPITAL
Salaries and wages $650,000.00
Occupancy $12,000.00
Professional services $176,000.00
Research and development
expenses $6,000.00
Reserve $123,705.00
Total proceeds for working
capital and reserve $967,705.00
Total Uses $10,000,000.00
5. FINANCIAL DISCLOSURES
5.1 Current Financial Disclosures
Nodechain is a publicly traded company on the OTC Markets, with the ticker symbol: VPTK.
Our current business operations are comprised of activities revolving around the blockchain,
with a particular emphasis on digital cryptocurrency mining and transaction validation. We
specialize in operating high-performance computers which validate the transfers of mineable
cryptocurrencies, thus collecting the fees associated with P2P transfers. Nodechain is currently
focused on mining Ethereum and Bitcoin.
5.2 Financial Plan Forward-Looking
In the future, the Company will focus on investing in additional cryptocurrency mining rig
computers in order to scale our operations and increase cash flow. Our goal is to obtain 250
mining rigs by the end of the third quarter, 2018. Nodechain intends to expand its
operations into different sectors related to the blockchain including, but not strictly limited
to, dynamic cryptocurrency mining applications, blockchain applications, solidity smart
contract development, cryptocurrency hashpower leasing, sales, service and B2B
cryptocurrency consultation.
6. CHECKLISTS/ MILESTONES
We continue to broaden our interests in the most lucrative arenas of cryptocurrency
Increasing our efforts in mining, and mining specifically for Ethereum, is a part of a concerted
effort to take advantage of this tremendous new market opportunity. The Company currently has
forty-five (45) GPU based computer mining rigs.
7. ASSETS
45 GPU based computer mining rigs that are capable of mining Bitcoin and Ethereum and
several other cryptocurrencies