Company: CLSKW
Filing Date: 2025-02-06
Form Type: 10-Q
Source: 0000950170-25-015470
Chunk: 22

Company: CLEANSPARK, INC.
Filing Date: 2025-02-06
Form: 10-Q
Item: Item 1
Chunk 22
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AL Derivative Asset on its balance sheet at fair value and account for changes in fair value as a derivative gain or loss. Changes in fair value of the ILAL Derivative Asset are presented as Other income (expense) in the condensed consolidated statements of operations and comprehensive income.Total fair value of investment in ILAL Derivative Asset as of December 31, 2024 and September 30, 2024 was $4,496 and $1,832, respectively, and as included in “Derivative investments” on the condensed consolidated balance sheet. The Company fair values the debt security as a straight debt instrument based on liquidation value, accrued interest to date, and an estimated 60% recovery rate for first-lien debt, which is an unobservable input. The fair value of the ILAL Derivative Asset is based on the difference in the fair value of the Series B Preferred Stock determined as a straight debt instrument and the fair value of the Series B Preferred Stock if converted as of the reporting date.

7.   PROPERTY AND EQUIPMENTProperty and equipment consist of the following:

         ($ in thousands)
         
        December 31, 2024

        September 30, 2024

        Land
         
        $
        39,034

        $
        32,190

        Land improvements

        6,110

        5,449

        Building and improvements

        78,919

        76,719

        Leasehold improvements

        1,995

        1,995

        Miners

        1,371,015

        1,035,128

        Mining equipment

        23,169

        23,066

        Infrastructure

        201,117

        155,191

        Machinery and equipment

        16,310

        15,061

        Furniture and fixtures

        2,014

        1,706

        Construction in progress

        52,467

        19,455

        Total
         
        $
        1,792,150

        $
        1,365,960

        Less: accumulated depreciation

        (536,150
        )

        (496,267
        )

        Property and equipment, net
         
        $
        1,256,000

        $
        869,693

F-19

Total depreciation expense for the three months ended December 31, 2024 and