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.

	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:

	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:

June 30, 2024
($ 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