4. Property and Equipment, net

The following represents a summary of our property and equipment:

Between March and August, 2018, the Company purchased $974,305 worth of cryptocurrency mining equipment. In December 2018, the Company sold $782,000 worth of this equipment for $150,000 for a loss on disposal of equipment of $522,917. For the year ended December 31, 2018, the Company recorded an impairment expense of $55,000 to reflect the expected sale of additional cryptocurrency mining equipment in 2019 at a loss.

Depreciation expense was $154,712 and $0 for the years ended December 31, 2018 and 2017, respectively. This is reflected as part of cost of revenues on the statement of operations.