Company: CLSKW
Filing Date: 2025-02-06
Form Type: 10-Q
Source: 0000950170-25-015470
Chunk: 40

Company: CLEANSPARK, INC.
Filing Date: 2025-02-06
Form: 10-Q
Item: Item 1
Chunk 40
---
 additional time to review the report.The Company believes that the claims raised in the Consolidated Smith Action are without merit and intends to defend itself vigorously against them. At this time, the Company is unable to estimate potential losses, if any, related to the Consolidated Smith Action.Consolidated Ciceri Derivative ActionsOn May 26, 2021, Andrea Ciceri filed a shareholder derivative action in the United States District Court for the District of Nevada against officers and directors of the Company, including the Company’s Executive Chair, CEO, former CFO, and certain other members of the Board of Directors. This and other related filings were consolidated by the Court on June 29, 2021 (the “Consolidated Ciceri Action”).The claims asserted in the Consolidated Ciceri Action include breach of fiduciary duties, unjust enrichment, abuse of control, gross mismanagement and waste of corporate assets. The plaintiffs seek declaratory relief, monetary damages and the imposition of additional corporate governance and internal controls.On December 12, 2024, the federal court dismissed the Consolidated Ciceri Action with prejudice.

F-30

15.   MAJOR CUSTOMERS AND VENDORSThe Company has one mining pool operator (Foundry Digital) that represented 100% of revenue for the three months ended December 31, 2024 and 2023. For the three months ended December 31, 2024 and 2023, the Company had the following significant suppliers of miners:

        Three Months Ended

        December 31, 2024

        December 31, 2023

        Bitmain Technologies

        94
        %

        100
        %

        Canaan U.S. Inc

        6
        %

        0
        %

16.   SUBSEQUENT EVENTSGeorgia 2025 Asset AcquisitionIn January 2025, the Company completed the $5,400 asset acquisition of a bitcoin mining facility and certain infrastructures located in Georgia. The definitive agreements include the purchase of mining data centers, and the assumption of the underlying real property lease. The transaction is accounted for as an asset acquisition, whereby the total purchase price is allocated first to the fair value of the assets acquired and any excess purchase price is allocated to the acquired assets pro-rata. 

F-31

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

($ presented in 000's, except for bitcoin price)

The following discussion and analysis of