Company: CLSKW
Filing Date: 2025-11-25
Form Type: 10-K
Source: 0001193125-25-297510
Chunk: 62

Company: CLEANSPARK, INC.
Filing Date: 2025-11-25
Form: 10-K
Item: Item 6
Chunk 62
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 are depreciated on a straight-line basis over the shorter of their estimated useful lives or the terms of the related leases. Land is not depreciated.

F-24

Depreciation is calculated on a straight-line basis over the estimated useful life of the asset as follows: 

           Useful life (years)

           Land improvements
            
           5 - 15

           Building and building improvements
            
           Shorter of lease term or 30 years

           Leasehold improvements
            
           Shorter of lease term or 15 years

           Miners
            
           3  (1)

           Mining equipment
            
           3 - 15

           Infrastructure asset
            
           Shorter of lease term or 15 years

           Machinery and equipment
            
           3 - 10

           Furniture and fixtures
            
           1 - 5

           (1) Effective May 1, 2024, the Company reduced the useful life for miners from five years to three years
          
         In accordance with the FASB ASC 360-10, Property, Plant and Equipment, the carrying value of property and equipment, and other long-lived assets, is reviewed on a regular basis for the existence of facts or circumstances that may suggest impairment. The Company recognizes impairment when the sum of the expected undiscounted future cash flows is less than the carrying amount of the asset. Impairment losses, if any, are measured as the excess of the carrying amount of the asset over its estimated fair value. During the year ended September 30, 2024, the Company recorded an impairment expense of approximately $197,000 due to the reduction of the useful life of miners that were removed from service prior to the originally estimated life and due to the subsequent change in salvage value (see Note 10 - Property and Equipment).Business Combinations, Intangible assets and GoodwillThe Company accounts for business combinations under the acquisition method of accounting in accordance with ASC 805, Business Combinations, where the total purchase price is allocated to the identified assets acquired and liabilities assumed based on their estimated fair values. The purchase price is allocated using the information currently available and may be adjusted, up to one year from acquisition date, after obtaining more information regarding, among other things, asset valuations, liabilities assumed and revisions to preliminary estimates. The difference between the purchase price, including any contingent consideration, and the fair value of net assets acquired is recorded