Company: CLSKW
Filing Date: 2025-02-06
Form Type: 10-Q
Source: 0000950170-25-015470
Chunk: 119

Company: CLEANSPARK, INC.
Filing Date: 2025-02-06
Form: 10-Q
Item: Item 8
Chunk 119
---
 31, 2024:

         ($ in thousands)
         
        Interest Rate Swap Derivative (1)(2)

        ILALDebtSecurities

        ILALDerivativeAsset(1)

        Balance as of September 30, 2024
         
        $
        (100
        )
         
        $
        918

        $
        1,832

        Unrealized gain on derivative asset

        —

        —

        2,613

        Unrealized gain on fair value recognized in other comprehensive income

        151

        32

        —

        Balance as of December 31, 2024
         
        $
        51

        $
        950

        $
        4,445

       (1)The “Derivative investments” caption in the condensed consolidated balance sheets consists of Interest Rate Swap Derivative and ILAL Derivative Asset (2)See Note 9 - LoansInterest Rate Swap Derivative In relation to the Company’s Western Alliance Bank Credit Agreement entered into in August 2024, the Company has an interest rate swap agreement (see Note 9 - Loans) for which the interest rate swap is not a designated hedge. As of December 31, 2024, the Interest Rate Swap Derivative was fair valued at $51, reflecting a gain of $151. As of September 30, 2024, the Interest Rate Swap Derivative was fair valued at a $100 unrealized loss.

F-18

International Land Alliance, Inc.On November 6, 2019, the Company entered into a Securities Purchase Agreement (“SPA”) with International Land Alliance, Inc. (“ILAL”), a Wyoming corporation, to support the power and energy needs of ILAL's development and construction of certain projects.ILAL Series B Preferred Stock (Investment in Debt Securities) and Embedded ILAL Derivative AssetPursuant to the terms of the SPA with ILAL, the Company purchased 1,000 shares of Series B Preferred Stock of ILAL (the “Series B Preferred Stock”) for an aggregate purchase price of $500 less certain expenses and fees. The Series B Preferred Stock accrues cumulative dividends in-kind at a rate of 12% per annum and was redeemable on August 6, 2020. The Series B Preferred Stock can be converted into common stock at a variable rate (refer to the discussion on embedded derivative assets below). This variable conversion ratio will increase by 10% with the occurrence of certain