Company: CLSKW
Filing Date: 2025-02-06
Form Type: 10-Q
Source: 0000950170-25-015470
Chunk: 132

Company: CLEANSPARK, INC.
Filing Date: 2025-02-06
Form: 10-Q
Item: Item 8
Chunk 132
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,000 GEM Warrants, of which approximately every 14 warrants are exercisable for one share of the Company’s common stock at $165.25, $165.25, and $69.55 per share, respectively.Management has determined that the Public Warrants are subject to accounting treatment as equity, while the Private Warrants and GEM Warrants are subject to accounting treatment as liabilities. At the consummation of the GRIID Acquisition, all warrants were measured at their fair value using the Black-Scholes option pricing model and included in the purchase price calculation.

F-26

At December 31, 2024, the Company used the Black-Scholes option-pricing model to estimate the fair value of the Private Warrants and the GEM Warrants using Level 3 inputs. The fair value of the Private Warrants and GEM Warrants are included in the Other liabilities caption on the condensed consolidated balance sheets and the changes in fair value are included in Gain (loss) on derivative securities on the condensed consolidated statements of operations.The following is a summary of stock warrant activity during the three months ended December 31, 2024.

        Number ofWarrants Outstanding

        Number ofShares to be Issued Upon Exercise of Warrants

        WeightedAverageExercisePrice ($) (1)

        Balance, September 30, 2024

        17,560

        17,560

        $
        6.12

        Warrants granted

        22,803,726

        1,586,999

        $
        157.96

        Warrants expired

        —

        —

        $
        —

        Warrants canceled

        —

        —

        $
        —

        Warrants exercised

        —

        —

        $
        —

        Balance, December 31, 2024

        22,821,286

        1,604,559

        $
        156.30

      (1) Weighted average calculated weighting the exercise price versus the number of common shares that would be granted on exercise.As of December 31, 2024, there were warrants exercisable to purchase 1,604,559 shares of common stock in the Company and there were no warrants that were unvested. These warrants have a weighted average exercise price of $156.30. Most outstanding warrants contain provisions allowing a cashless exercise at their respective exercise prices.As of December 31, 2024, 22,813,726 of the