Company: CLSKW
Filing Date: 2025-02-06
Form Type: 10-Q
Source: 0000950170-25-015470
Chunk: 38

Company: CLEANSPARK, INC.
Filing Date: 2025-02-06
Form: 10-Q
Item: Item 1
Chunk 38
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 there is no stock-based compensation expense recorded under the 2025 LTIP, until such time as the performance metrics are finalized and determined. 

14.   COMMITMENTS AND CONTINGENCIESPurchase of modular immersion data centersThe Company entered into a $165,000 contract subject to certain discounts in June 2024 for the purchase and on-site construction and installation of modular immersion data centers. The $49,500 remaining balance of the contract is expected to be paid in installments between January 2025 through April 2025. Purchase of bitcoin minersThe Company had $1,290 in unrecorded open purchase commitments for miners or mining equipment as of December 31, 2024 in relation to the purchase transactions with Bitmain Technologies Delaware Limited. Commitments under open construction projectsThe Company has open commitments relating to the construction and development of new mining locations and operational facilities of $32,058.Contractual future paymentsThe following table sets forth certain information concerning our obligations to make contractual future payments towards our agreements as of December 31, 2024 (Fiscal Year 2025 excludes three months ended December 31, 2024):

        Fiscal Year

         ($ in thousands)
         
        2025 (Remainder)

        Contractual obligations:

        Modular immersion data centers
         
        $
        49,500

        Construction in progress

        32,058

        Purchcase of bitcoin miners

        1,290

        Total
         
        $
        82,848

      State Tax IncentivesWhen the Company enters new jurisdictions, it seeks incentives on taxes including; sales and use taxes, property taxes, employment taxes and income taxes. The Company has been previously successful obtaining such incentives and is currently seeking additional incentives, which if the Company is unsuccessful in obtaining may result in a liability of approximately $18,290.Legal contingenciesIn addition to the legal matters disclosed below, the Company may from time to time be subject to various legal proceedings and claims that arise in the ordinary course of its business activities. The outcome of litigation is inherently uncertain. If one or more legal matters were resolved against the Company in a reporting period for amounts above management’s expectations, the Company’s financial condition and operating results for that reporting period could be materially adversely affected.

F-29

Hasthantra v. CleanSpark, Inc. et al.On January 20, 2021, Scott Bishins (“Bishins”), individually, and on behalf of all others similarly situated (to