Company: CLSKW
Filing Date: 2025-02-06
Form Type: 10-Q
Source: 0000950170-25-015470
Chunk: 15

Company: CLEANSPARK, INC.
Filing Date: 2025-02-06
Form: 10-Q
Item: Item 1
Chunk 15
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, deferred taxes, income tax payables, and other estimates, during the measurement period will be recorded in the reporting period in which the adjustment amounts are determined. Changes to amounts recorded as assets and liabilities may result in a corresponding adjustment to goodwill.

F-14

The excess purchase price over the net assets acquired has been recorded as goodwill. The preliminary net assets acquired as of the acquisition date are presented as follows:

        ($ in thousands)
         
        Allocation as of October 30, 2024

        Tangible assets

        Cash and cash equivalents
         
        $
        1,089

        Restricted cash

        323

        Accounts receivable

        172

        Prepaid expense and other current assets

        193

        Property and equipment

        18,493

        Other long-term assets

        5,593

        Operating lease right of use assets

        1,100

        Total tangible assets acquired

        26,963

        Intangible assets

        Goodwill

        127,208

        Total assets acquired

        154,171

        Liabilities assumed

        Accounts payable

        1,753

        Accrued liabilities

        18,789

        Finance lease obligations

        2

        Operating lease liabilities

        2,458

        Other liabilities

        2,922

        Total liabilities assumed

        25,924

        Net assets acquired
         
        $
        128,247

      The preliminary purchase price for GRIID has been allocated to assets acquired and liabilities assumed based on the Company’s best estimates and assumptions using the information available as of the acquisition date and throughout measurement period (up to one year from the acquisition date). The provisional measurements of identifiable assets and liabilities, and the resulting goodwill related to the acquisition are subject to adjustments in subsequent periods as the Company finalizes its purchase price allocation, including the third-party valuation. This also includes finalizing the review and valuation of deferred income taxes and the federal and state accrued tax provisions. Actual values may differ (possibly materially) when final information becomes available that differs from current estimates. The Company believes that information gathered to date provides a reasonable basis for estimating the preliminary fair values of assets acquired and liabilities assumed. The Company expects to finalize the valuation as soon as practicable, but no later than one year from the acquisition date.The Company recognized merger costs of $396 related to the acquisition of GRIID, consisting primarily of legal fees