Company: CLSKW
Filing Date: 2025-11-25
Form Type: 10-K
Source: 0001193125-25-297510
Chunk: 80

Company: CLEANSPARK, INC.
Filing Date: 2025-11-25
Form: 10-K
Item: Item 6
Chunk 80
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 contingent consideration of $484 in Other Income (expense) in the Consolidated Statements of Operations and Comprehensive Income (Loss). The shares associated with the earn-out were issued to Mawson in January 2023 (see Note 15 - Stockholders' Equity).•up to an additional $2,000 in a seller-financed earn-out payable at least 60 days post-closing if the Company receives written confirmation that it will be able to utilize at least an additional 150 MW of power on the Mawson Property by the six-month anniversary of the closing, April 8, 2023. Such written confirmation was not received by April 8, 2023, and accordingly, the Company determined this contingency criteria was not met by April 8, 2023 and has not paid the additional consideration. The Company adjusted the contingency liability to $0 as of June 30, 2023 and recognized $2,000 gain in Change in Fair Value of Contingent Consideration on the Consolidated Statements of Operations and Comprehensive Income (Loss).

F-36

The Company accounted for this transaction as an acquisition of a business. The fair value of the consideration given to Mawson and the other sellers in connection with the transaction and the allocation of the purchase price in accordance with ASC 820 were as follows:

         ($ in thousands)
          
         Fair Value

         Cash
          
         $
         22,518

         Financing provided by seller

         6,500

         1,590,175 shares of CLSK common stock

         4,803

         Total purchase price
          
         $
         33,821

         Contingent Consideration

         Earn-out Shares of CLSK common stock

         3,325

         Megawatt earnout (up to $2,000 max)

         2,000

         Total contingent consideration
          
         $
         5,325

         Total purchase sale agreement consideration
          
         $
         39,146

         ($ in thousands)
          
         Allocation at Acquisition Date

         Right of use lease asset
          
         $
         5,010

         Lease liability assumed

         (5,100
         )

         Building

         13,654

         Infrastructure asset

         4,465

         Miners

         12,914

         Machinery and equipment

         160

         Goodwill

         8,043

         Total