7. PROPERTY AND EQUIPMENT

12 Months Ended

Sep. 30, 2022

Property, Plant and Equipment [Abstract]

7. PROPERTY AND EQUIPMENT

Property and equipment consist of the following as of September 30, 2022 and September 30, 2021:


	September 30, 2022			September 30, 2021
Land	$	2,977,619		$	2,877,619
Land improvements		1,529,937			—
Building and improvements		32,332,251			8,170,680
Leasehold improvements		114,362			59,114
Miners		356,500,871			120,330,768
Mining equipment		17,586,847			2,817,074
Infrastructure		12,421,756			81,868
Machinery and equipment		1,268,932			239,283
Furniture and fixtures		331,444			107,660
Construction in progress		4,816,189			10,498,311
Total		429,880,208			145,182,377
Less: accumulated depreciation		(53,098,828	)		(7,560,831	)
Property and equipment, net	$	376,781,380		$	137,621,546

Depreciation expense for the years ended September 30, 2022 and 2021 was $47,081,550 and $7,405,025, respectively. During the year ended September 30, 2022, $4,390,160 of property and equipment was disposed of for

a gain of $642,691, which included $411,484 of property and equipment that was written-off resulting in a loss of $278,170. There were no disposals during the year ended September 30, 2021.

The Company placed-in service property and equipment of $265,204,734 during the year ended September 30, 2022. This increase in fixed assets primarily consisted of miners and mining equipment amounting to $245,706,410.

Construction in progress: The Company is expanding its facilities in Georgia.

The Company has cancellable purchase commitments for approximately $30 million related to purchase of miners as of September 30, 2022, and the Company has paid $3 million towards these commitments as of the end of this period. As of September 30, 2022, the remaining commitment for future payments was $27 million.

As of September 30, 2022 and September 30, 2021, the Company has outstanding deposits for miners and mining equipment totaling $12.5 million and $88 million, respectively. These deposits are in prepayments paid to premier suppliers and manufacturers to purchase mining ASICs and equipment. The prepayments will be applied to the purchase price when the vendor ships the miners.