Company: CLSKW
Filing Date: 2025-11-25
Form Type: 10-K
Source: 0001193125-25-297510
Chunk: 122

Company: CLEANSPARK, INC.
Filing Date: 2025-11-25
Form: 10-K
Item: Item 6
Chunk 122
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 or permissions  to users which allowed certain users to create new users and assign those users existing predefined roles in the general ledger, which could result in an override of existing internal controls over financial reporting. The existence of this material weakness affected the design of internal controls related to various assertions in certain financial statement line items such that internal controls were not effective for cash and cash equivalents, bitcoin, receivable from bitcoin collateral, note receivable from GRIID, property and equipment, deposits on miners, accounts payable, accrued liabilities, loans payable, deferred income taxes, stockholders' equity, bitcoin mining revenue, cost and expenses, share-based payments, and income tax expense.•Material Weakness #2 - The Company did not design and maintain effective controls to address the accounting for property plant and equipment, and deposits on miners.   

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•Material Weakness #3 - The Company did not design and maintain effective controls over payroll, including controls over the use of information from its third-party payroll service provider, maintaining appropriate segregation of duties and processing of payroll. •Material Weakness #4 - The Company did not design and maintain effective controls to safeguard cash that could result in the issuance of cashier's checks without any independent oversight. Throughout the current fiscal year, we completed the implementation and testing of the remediation measures designed to address these material weaknesses.  These remediation actions taken to address the material weaknesses  included the following:  Material Weakness #1•Removed users’ access within the general ledger system that allowed a user to create users and also perform accounting transactions. Updated roles in the general ledger system to ensure no actively assigned roles have ability to create users and perform accounting functions;•Implemented monthly reviews of user access logs by individuals who do not perform accounting transactions in the general ledger; •Redesigned and implemented relevant complementary user entity controls identified in third-party service organization system organization and control reports; •Expanded the management and governance over IT system controls, including the hiring of a Systems Analyst and an IT Analyst; •Redesigned and implemented controls over the completeness and accuracy of information used in the operation of controls, including data used in the preparation of condensed consolidated financial statements;•Redesigned and implemented controls over logical access, including user access provisioning, termination, and periodic review for all financial reporting systems; Material Weakness #2•Redesigned and implemented controls related to the counting of received property, plant and equipment; •Designed and implemented controls over the completeness and accuracy of information used in the operation of controls, including data used