Company: CLSKW
Filing Date: 2025-02-06
Form Type: 10-Q
Source: 0000950170-25-015470
Chunk: 11

Company: CLEANSPARK, INC.
Filing Date: 2025-02-06
Form: 10-Q
Item: Item 1
Chunk 11
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 on convertible notes

          119

          —

          Net income attributable to common shareholders - Dilutive

          241,769

          25,330

          Denominator

          Weighted-average common shares outstanding - Basic

          284,549,900

          178,809,264

          Dilutive impact of stock options and other share-based awards

          652,120

          1,974,271

          Dilutive impact of convertible notes

          6,685,121

          —

          Weighted-average common shares outstanding - Dilutive

          291,887,141

          180,783,535

          (Loss) income per common share attributable to common shareholders

          Basic
           
          $
          0.85

          $
          0.14

          Diluted
           
          $
          0.83

          $
          0.14

        Fair Value Measurement of Financial Instruments, Derivative Assets and Contingent ConsiderationFair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value maximize the use of observable inputs and minimize the use of unobservable inputs. The Company utilizes a fair value hierarchy based on three levels of input, of which the first two are considered observable and the last unobservable:

        Level 1
        Quoted prices in active markets for identical assets or liabilities. These are typically obtained from real-time quotes for transactions in active exchange markets involving identical assets.

        Level 2
        Quoted prices for similar assets and liabilities in active markets; quoted prices included for identical or similar assets and liabilities that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. These are typically obtained from readily-available pricing sources for comparable instruments.

        Level 3
        Unobservable inputs, where there is little or no market activity for the asset or liability. These inputs reflect the reporting entity’s own beliefs about the assumptions that market participants would use in pricing the asset or liability, based on the best information available in the circumstances. Due to the use of significant unobservable inputs, a change in those inputs to a different amount might result in a significantly higher or lower fair value measurement.
       
      The carrying value of cash, accounts payable, accrued