3. DISCONTINUED OPERATIONS

12 Months Ended

Sep. 30, 2022

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS

3. DISCONTINUED OPERATIONS

The Company determined to make available for sale the asset groups related to the energy segment due to its strategic shift to strictly focus on its bitcoin mining operations. As a result, the Energy segments' results of operations have been reclassified as discontinued operations on a retrospective basis for all periods presented. Accordingly, the assets and liabilities of this segment are separately reported as “assets and liabilities held for sale” as of September 30, 2022 and 2021 in the consolidated balance sheets. The results of operations of this segment, for all periods, are separately reported as “discontinued operations” in the consolidated statements of operations and comprehensive loss. Provided below are the key areas of the financials that constitute the discontinued operations:

	September 30, 2022		September 30, 2021
ASSETS
Current assets
Accounts receivable, net	$	2,813,166	$	2,312,890
Inventory		4,399,915		2,592,933
Prepaid expense and other current assets		212,800		2,991,243
Total current assets held for sale	$	7,425,881	$	7,897,066
Property and equipment, net		11,284		53,193
Operating lease right of use asset		665,071		824,435
Intangible assets, net		868,319		4,476,306
Goodwill		—		7,000,779
Long-term assets held for sale	$	1,544,674	$	12,354,713
Total assets held for sale	$	8,970,555	$	20,251,779
LIABILITIES
Current liabilities
Accounts payable and accrued liabilities	$	918,758	$	1,289,713
Contract liabilities		116,690		—
Operating lease liability		163,248		152,064
Total current liabilities held for sale		1,198,696		1,441,777
Long-term liabilities
Operating lease liability, net of current portion		511,530		674,779
Total liabilities held for sale	$	1,710,226	$	2,116,556

	For the year ended
	September 30, 2022			September 30, 2021
Revenues, net
Energy hardware, software and services revenue	$	9,667,290		$	10,151,010
Total revenues, net		9,667,290			10,151,010
Costs and expenses
Cost of revenues (exclusive of depreciation and amortization shown below)		8,710,760			8,701,681
Professional fees		115,960			486,583
Payroll expenses		4,911,322			4,173,778
General and administrative expenses		1,640,920			823,508
Impairment expense - fixed assets		31,833			—
Impairment expense - intangibles		1,402,016			1,531,711
Impairment expense - other		871,649			—
Impairment expense - goodwill		7,000,779			4,746,000
Depreciation and amortization		2,215,537			3,262,245
Total costs and expenses		26,900,776			23,725,506
Loss from operations		(17,233,486	)		(13,574,496	)
Other income (expense)
Interest expense		(3,475	)		(8,352	)
Total other income (expense)		(3,475	)		(8,352	)
Loss before income tax (expense) or benefit		(17,236,961	)		(13,582,848	)
Income tax (expense) or benefit		—			—
Net loss	$	(17,236,961	)	$	(13,582,848	)