Company: CLSKW
Filing Date: 2025-02-06
Form Type: 10-Q
Source: 0000950170-25-015470
Chunk: 58

Company: CLEANSPARK, INC.
Filing Date: 2025-02-06
Form: 10-Q
Item: Item 1
Chunk 58
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 Annual Report on Form 10-K as filed with the SEC on December 3, 2024. 

We regularly evaluate opportunities to expand our business, including through potential acquisitions of businesses or assets. We will evaluate a variety of sources of capital in connection with financing any future possible acquisitions, including the incurrence of debt, sales of stock or bitcoin, or using cash on hand. We may also use the Company’s stock as transaction consideration, as we have done in the past. 

Operating Activities

The Company generates non-cash revenue through mining Bitcoin, which it retains the majority based on its long-term value strategy, while funding all operating expenses with cash. As a result, net cash used in operating activities for the three months ended December 31, 2024 was $119,452 primarily due to cost of revenues of $70,290 and payroll expenses of $20,869, in spite of a net income of $246,791, due to the increase of the non-cash gains in the held bitcoin balance. Changes in operating assets and liabilities used a net total of $18,079 of cash. 

Operating activities from continuing operations for the three months ended December 31, 2023, resulted in a net cash outflow of $47,276 . This was primarily driven by net income of $25,909, which included significant non-cash revenue and gains, in the form of bitcoin. The non-cash adjustments to reconcile net income to net cash included $29,847 for depreciation and amortization and $9,953 for stock-based compensation, offset by $73,786 of non-cash bitcoin mining revenues. Additionally, changes in operating assets and liabilities contributed a net cash inflow of $6,863.

Investing Activities

Investing activities from operations used $255,947 during the three months ended December 31, 2024, as compared with using $32,818 for the three months ended December 31, 2023. Our payments on miners (including miner deposits) of $126,867, purchase of fixed assets of $57,359, and payment for the asset acquisition of the Tennessee locations of $8,105 were the main components of our investing cash outflow for the three months ended December 31, 2024. This was partly offset by cash received in the acquisition of GRIID of $1,411 and by cash proceeds received from the sale of miners of $30,134.

Financing Activities

Cash flows generated from financing activities of continuing operations