2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
|
9 Months Ended |
Jun. 30, 2024 |
|---|
| Accounting Policies [Abstract] |
|
| Schedule of Estimated Useful Life of Asset |
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 |
|
|
|
| Schedule of Accounts Receivable |
Accounts receivable, net consists of the following and is included in the condensed consolidated balance sheets as Prepaid and other currents assets:
|
|
|
|
|
|
|
|
|
($ in thousands) |
|
June 30,
2024 |
|
|
September 30,
2023 |
|
Accounts Receivable, gross |
|
$ |
— |
|
|
$ |
353 |
|
Provision for doubtful allowances |
|
|
— |
|
|
|
(348 |
) |
Total Accounts Receivable, net |
|
$ |
— |
|
|
$ |
5 |
|
|
| Schedule of Potentially Dilutive Securities |
The following table presents potentially dilutive securities that were not included in the computation of diluted net income (loss) per share as their inclusion would have been anti-dilutive.
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|
Three months ended
June 30, |
|
|
Nine months ended
June 30, |
|
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
Restricted stock awards |
|
|
1,028,749 |
|
|
|
763,190 |
|
|
|
1,707,026 |
|
|
|
- |
|
Options |
|
|
339,282 |
|
|
|
9,397 |
|
|
|
158,124 |
|
|
|
2,289 |
|
Warrants |
|
|
13,767 |
|
|
|
729 |
|
|
|
12,376 |
|
|
|
- |
|
Contingently Issued Earn-out Shares |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
387,126 |
|
Total |
|
|
1,381,798 |
|
|
|
773,316 |
|
|
|
1,877,526 |
|
|
|
389,415 |
|
|
| Schedule of Earnings Per Share Basic and Diluted |
Provided below is the loss per share calculation for the three and nine months ended June 30, 2024 and 2023:
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended June 30, |
|
|
For the Nine Months
Ended June 30, |
|
($ in thousands, except share and per share amounts) |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
Continuing Operations |
|
|
|
|
|
|
|
|
|
|
|
|
Numerator |
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from continuing operations |
|
$ |
(236,242 |
) |
|
$ |
(14,117 |
) |
|
$ |
(83,598 |
) |
|
$ |
(62,771 |
) |
Preferred stock dividends |
|
|
— |
|
|
|
— |
|
|
|
3,421 |
|
|
|
— |
|
(Loss) income from continuing operations attributable to common shareholders |
|
$ |
(236,242 |
) |
|
$ |
(14,117 |
) |
|
$ |
(87,019 |
) |
|
$ |
(62,771 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Denominator |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding, basic |
|
|
228,642,939 |
|
|
|
114,844,402 |
|
|
|
205,482,062 |
|
|
|
87,248,719 |
|
Dilutive impact of stock options and other share-based awards |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
389,415 |
|
Weighted-average common shares outstanding, diluted |
|
|
228,642,939 |
|
|
|
114,844,402 |
|
|
|
205,482,062 |
|
|
|
87,638,134 |
|
(Loss) income from continuing operations per common share attributable to common shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(1.03 |
) |
|
$ |
(0.12 |
) |
|
$ |
(0.42 |
) |
|
$ |
(0.72 |
) |
Diluted |
|
$ |
(1.03 |
) |
|
$ |
(0.12 |
) |
|
$ |
(0.42 |
) |
|
$ |
(0.72 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued Operations |
|
|
|
|
|
|
|
|
|
|
|
|
Numerator |
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from discontinued operations |
|
$ |
— |
|
|
$ |
(102 |
) |
|
$ |
— |
|
|
$ |
1,061 |
|
Denominator |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding, basic |
|
|
228,642,939 |
|
|
|
114,844,402 |
|
|
|
205,482,062 |
|
|
|
87,248,719 |
|
Dilutive impact of stock options and other share-based awards |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
389,415 |
|
Weighted-average common shares outstanding, diluted |
|
|
228,642,939 |
|
|
|
114,844,402 |
|
|
|
205,482,062 |
|
|
|
87,638,134 |
|
Income on discontinued operations per common share attributable to common shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
0.01 |
|
Diluted |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
0.01 |
|
|
| Schedule of Financial Instruments |
The following table presents the Company’s financial instruments that are measured and recorded at fair value on the Company’s balance sheets on a recurring basis and their level within the fair value hierarchy as of June 30, 2024 and September 30, 2023:
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|
|
|
June 30, 2024 |
|
|
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|
|
|
|
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|
($ in thousands) |
|
Amount |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
Bitcoin |
|
$ |
413,033 |
|
|
$ |
413,033 |
|
|
$ |
— |
|
|
$ |
— |
|
Derivative investment asset |
|
|
1,692 |
|
|
|
— |
|
|
|
— |
|
|
|
1,692 |
|
Investment in debt security |
|
|
812 |
|
|
|
— |
|
|
|
— |
|
|
|
812 |
|
Total |
|
$ |
415,537 |
|
|
$ |
413,033 |
|
|
$ |
— |
|
|
$ |
2,504 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
($ in thousands) |
|
Amount |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
Derivative investment asset |
|
$ |
2,697 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
2,697 |
|
Investment in debt security |
|
|
726 |
|
|
|
— |
|
|
|
— |
|
|
|
726 |
|
Total |
|
$ |
3,423 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
3,423 |
|
|