4. DISCONTINUED OPERATIONS

9 Months Ended

Jun. 30, 2023

Discontinued Operations and Disposal Groups [Abstract]

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 segment's 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 June 30, 2022 in the consolidated balance sheets. The Company has since sold the majority of its software and intellectual property assets related to the energy segment and is in the process of selling additional remaining inventory and assets. The results of operations of this segment, for all periods, are separately reported as “discontinued operations” in the consolidated statements of operations and comprehensive income (loss).

In February 2023, the Company entered into an agreement to sell the remaining battery and solar inventory pertaining to the discontinued operations of Solar Watt Solutions Inc. The sale price was $4,600 and consists of a receivable from the buyer that will be paid to the Company as inventory is utilized and sold by the buyer, but such receivable will be required to be paid in full within the earlier of the sellout of the purchased inventory or 18 months. However, the criteria has not been met to recognize a gain or loss on the disposal of inventory held for sale. The Company will recognize a gain or loss in future periods when the inventory has been disposed of under the sales agreement.

In November 2022, the Company sold certain software rights and assets that were classified as assets held for sale for a net sales price of $2,523 with a carrying amount of $813 resulting in a recognized gain of $1,710.

Provided below are the key areas of the financials that constitute the discontinued operations:


	June 30, 2023		September 30, 2022
ASSETS
Current assets
Accounts receivable, net	$	509	$	2,813
Inventory		4,400		4,400
Prepaid expense and other current assets		10		213
Total current assets held for sale	$	4,919	$	7,426

Property and equipment, net		11		11
Operating lease right of use asset		541		665
Intangible assets, net		—		869
Long-term assets held for sale	$	552	$	1,545

Total assets held for sale	$	5,471	$	8,971

LIABILITIES
Current liabilities
Accounts payable and accrued liabilities	$	176	$	919
Contract liabilities		—		117
Operating lease liability		172		163
Total current liabilities held for sale		348		1,199
Long-term liabilities
Operating lease liability, net of current portion		382		512
Total liabilities held for sale	$	730	$	1,711


	For the three months ended						For the nine months ended
	June 30, 2023			June 30, 2022			June 30, 2023			June 30, 2022
Revenues, net
Energy hardware, software and services revenue	$	11		$	600		$	140		$	9,157
Total revenues, net		11			600			140			9,157

Costs and expenses
Cost of revenues (exclusive of depreciation and amortization shown below)		41			712			129			7,317
Professional fees		9			1			113			64
Payroll expenses		68			715			376			4,006
General and administrative expenses		(8	)		520			76			996
Impairment expense - fixed assets					32			—			32
Impairment expense - intangibles					1,402			—			1,402
Impairment expense - other		—			2,144			100			2,144
Impairment expense - goodwill					7,001			—			7,001
Depreciation and amortization					801			—			2,282
Total costs and expenses		110			13,328			794			25,244

Loss from operations	$	(99	)	$	(12,728	)	$	(654	)	$	(16,087	)

Other income (expense)
Gain on disposal of assets		—			—			1,721			—
Interest expense		(3	)		(1	)		(6	)		(3	)
Total other income (expense)		(3	)		(1	)		1,715			(3	)

(Loss) Income before income tax (expense) or benefit		(102	)		(12,729	)		1,061			(16,090	)
Income tax benefit (expense)		—			—			—			—
Net (loss) income attributable to common shareholders	$	(102	)	$	(12,729	)	$	1,061		$	(16,090	)