Company: CLSKW
Filing Date: 2025-11-25
Form Type: 10-K
Source: 0001193125-25-297510
Chunk: 103

Company: CLEANSPARK, INC.
Filing Date: 2025-11-25
Form: 10-K
Item: Item 6
Chunk 103
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         $
         (691
         )

         Prepaid expenses

         (1,868
         )

         (927
         )

         Change in fair value of digital currency

         (133,639
         )

         (22,706
         )

         Other

         (1,008
         )

         (1,070
         )

         Fixed assets

         (26,187
         )

         (8,040
         )

         Gross deferred tax liabilities
          
         $
         (163,708
         )
          
         $
         (33,434
         )

         Net deferred tax liability
          
         $
         (44,872
         )
          
         $
         (5,761
         )
        
       For balance sheet presentation, the Company nets deferred tax assets and liabilities within a given tax jurisdiction. When the amounts relate to different jurisdictions, the Company presents net deferred tax assets (net of valuation allowance) and net deferred tax liabilities separately within noncurrent assets and noncurrent liabilities, respectively. The following table summarizes this presentation:

         September 30, 2025

         September 30, 2024

         Net non-current deferred tax liabilities
          
         $
         (44,872
         )
          
         $
         (5,761
         )
        
       In accordance with ASC 740, Accounting for Income Taxes, the Company evaluates its deferred income taxes to determine if valuation allowances are required. Pursuant to U.S. income tax accounting standards, companies assess whether valuation allowances should be established against their deferred tax assets based on the consideration of all available evidence using a “more-likely-than-not” standard. The ultimate realization of deferred tax assets depends on the generation of future taxable income during the periods in which those temporary differences are deductible. The Company considers the scheduled reversal of deferred tax liabilities. To fully utilize the NOL carryforward, the Company will need to generate sufficient future taxable income in each respective jurisdiction. Due primarily to the Company’s history of losses, it is more likely than not that all or a portion of its deferred tax assets as of September 30, 2025 will not be realized.The Company recorded a valuation allowance to offset deferred tax assets that were not considered realizable for the tax years ended September 30, 2025 and September 30, 2024. The valuation allowance decreased from $54,926 as of September 30, 2024 to $3,389 as of September 30, 2025, primarily