CleanSpark, Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>CleanSpark, Inc. filed its Q2 2024 10-Q, detailing financial positions and operational assets as of March 31, 2024.</b>

AI Summary

CLEANSPARK, INC. (CLSKW) filed a Quarterly Report (10-Q) with the SEC on May 9, 2024. CleanSpark, Inc. filed its 10-Q report for the quarterly period ended March 31, 2024. The filing covers the period from October 1, 2023, to March 31, 2024, and includes data for the fiscal second quarter. Key financial statement items such as Common Stock, Additional Paid In Capital, and Accumulated Other Comprehensive Income are detailed as of various dates. The report references specific assets including Intangible Assets, Construction in Progress, and ILAL Derivative Assets as of March 31, 2024. Discussions of mining equipment, including Antminer S21 Mining Machines and S21 Pro Miners, are present for the period October 1, 2023, to March 31, 2024.

Why It Matters

For investors and stakeholders tracking CLEANSPARK, INC., this filing contains several important signals. This 10-Q filing provides investors with the latest financial snapshot of CleanSpark, Inc., crucial for understanding its performance and asset base in the current quarter. The detailed breakdown of assets and equity components offers insights into the company's financial health and its investments in mining operations and equipment.

Risk Assessment

Risk Level: medium — CLEANSPARK, INC. shows moderate risk based on this filing. The company's financial performance and operational status are subject to the volatile cryptocurrency market, which can significantly impact its revenue and asset valuations.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-Q to assess CleanSpark's current financial health and future prospects in the cryptocurrency mining sector.

Key Numbers

• 2024-03-31 — Period End Date (Quarterly period ended)
• 2024-05-09 — Filing Date (Date the report was filed)
• Q2 — Fiscal Quarter (Indicates the fiscal quarter)
• 0930 — Fiscal Year End (Company's fiscal year end)

Key Players & Entities

• CLEANSPARK, INC. (company) — Filer name
• CLSK (company) — Ticker symbol
• CLSKW (company) — Warrant ticker symbol
• 2024-03-31 (date) — Period of report
• 2024-05-09 (date) — Filing date
• 0000827876 (company) — Central Index Key
• HENDERSON (location) — Business address city
• NV (location) — Business address state

FAQ

Risk Factors

• Market Volatility Risk [high — market]: The company's operations and financial results are significantly impacted by the price volatility of cryptocurrencies.
• Operational Risks [medium — operational]: Risks associated with the operation of mining equipment, including potential downtime and maintenance issues.
• Financing and Liquidity Risks [medium — financial]: Risks related to the company's ability to secure necessary financing and maintain adequate liquidity.

Key Dates

• 2024-03-31: Quarterly Period End — End date for the financial reporting period covered by the 10-Q.
• 2024-05-09: Filing Date — Date the 10-Q report was officially filed with the SEC.

Key Financial Figures

• $0.001 — ch registered Common Stock, par value $0.001 per share CLSK The Nasdaq Stock Mar

Filing Documents

• clsk-20240331.htm (10-Q) — 2660KB
• clsk-ex31_1.htm (EX-31.1) — 25KB
• clsk-ex31_2.htm (EX-31.2) — 25KB
• clsk-ex32_1.htm (EX-32.1) — 10KB
• clsk-ex32_2.htm (EX-32.2) — 10KB
• 0000950170-24-056330.txt (&nbsp;) — 13073KB
• clsk-20240331.xsd (EX-101.SCH) — 2153KB
• clsk-20240331_htm.xml (XML) — 2470KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION Item 1:

Financial Statements

Financial Statements 5 Item 2:

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 6 Item 3:

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 19 Item 4:

Controls and Procedures

Controls and Procedures 19

– OTHER INFORMATION

PART II – OTHER INFORMATION Item 1:

Legal Proceedings

Legal Proceedings 21 Item 1A:

Risk Factors

Risk Factors 21 Item 2: Unregistered Sales of Equity Securities and Use of Proceeds 21 Item 3: Defaults Upon Senior Securities 21 Item 4: Mine Safety Disclosures 21 Item 5: Other Information 21 Item 6: Exhibits 22 2

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements other than statements of historical facts contained in this Quarterly Report on Form 10-Q may be forward-looking statements. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "targets," "projects," "contemplates," "believes," "estimates," "forecasts," "predicts," "potential" or "continue" or the negative of these terms or other similar expressions. Forward-looking statements contained in this Quarterly Report on Form 10-Q include, but are not limited to, statements regarding our future results of operations and financial position, future hash rate capacity, industry and business trends, equity compensation, business strategy, plans, market growth and objectives for future operations. The forward-looking statements in this Quarterly Report on Form 10-Q are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to: our ability to achieve profitability, and to maintain prof

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Our consolidated financial statements included in this Form 10-Q are as follows: Consolidated Balance Sheets as of March 31, 2024 (unaudited) and September 30, 2023; F- 1 Consolidated Statements of Operations and Comprehensive Income (Loss) for the three and six months ended March 31, 2024 and 2023 (unaudited); F- 3 Consolidated Statements of Stockholders' Equity for the three and six months ended March 31, 2024 and 2023 (unaudited); F- 5 Consolidated Statements of Cash Flow for the six months ended March 31, 2024 and 2023 (unaudited); F- 7

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited). F- 9 This Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended September 30, 2023, filed with the SEC on December 1, 2023. The accompanying consolidated financial statements and footnotes have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and the SEC instructions to Form 10-Q. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Operating results for the interim period ended March 31, 2024 are not necessarily indicative of the results that can be expected for the full year. 5 CLEANSPARK, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except par value and share amounts) March 31, 2024 September 30, 2023 (Unaudited) ASSETS Current assets Cash and cash equivalents, including restricted cash $ 323,052 $ 29,215 Accounts receivable, net — 5 Inventory 991 809 Prepaid expense and other current assets 4,134 12,034 Bitcoin (See Note 2 and Note 5) 357,981 56,241 Derivative investment asset 505 2,697 Investment in debt security, AFS, at fair value 784 726 Current assets held for sale 324 445 Total current assets $ 687,771 $ 102,172 Property and equipment, net $ 670,510 $ 564,395 Operating lease right of use asset 228 688 Intangible assets, net 3,736 4,603 Deposits on miners and mining equipment 161,309 75,959 Other long-term asset 5,718 5,718 Goodwill 8,043 8,043 Total assets $ 1,537,315 $ 761,578 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable and accrued liabilities $ 43,632 $ 65,577 Current portion of operating lease liability 177 181 Current portion of finance lease liability 52

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited, $ in thousands, except per share and per bitcoin and per terahash amounts) 1. ORGANIZATION CleanSpark is a bitcoin mining company. The Company independently owns and operates five data centers in Georgia and three data centers in Mississippi for a total developed capacity of 420 megawatts ("MW") and 435 MW as of March 31, 2024 and April 4, 2024, respectively. The Company has completed an additional 50 MW of data center infrastructure in Sandersville, GA, which is pending the commissioning of a utility transformer before it goes into service and the Company is currently finalizing the development of an additional 15 MW expansion at its Dalton, GA location . An independent data center operation in Massena, NY, hosts 50 MW for the Company. The Company does not c urrently host miners for any other companies. CleanSpark designs its infrastructure to responsibly support bitcoin, the world's most important digital commodity and an essential tool for financial independence and inclusion. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The accompanying unaudited consolidated interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the SEC and should be read in conjunction with the audited consolidated financial statements and notes thereto contained in the Company's most recent Annual Report on Form 10-K for the fiscal year ended September 30, 2023, filed with the SEC on December 1, 2023 (the "Form 10-K"). In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim period presented in this Quarterly Report on Form 10-Q have been reflected herein. The results of operations for the interim period are not necessarily i

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