2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
|
12 Months Ended |
Sep. 30, 2024 |
|---|
| Accounting Policies [Abstract] |
|
| Schedule of Earnings Per Share Basic and Diluted |
Provided below is the loss per share calculation for the years ended September 30, 2024, 2023 and 2022:
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For the Year
Ended September 30, |
|
($ in thousands, except share and per share amounts) |
|
2024 |
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2023 |
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|
2022 |
|
Continuing Operations |
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Numerator |
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|
Loss from continuing operations |
|
$ |
(145,777 |
) |
|
$ |
(133,719 |
) |
|
$ |
(40,089 |
) |
Preferred stock dividends |
|
|
3,422 |
|
|
|
— |
|
|
|
336 |
|
Loss from continuing operations attributable to common shareholders |
|
$ |
(149,199 |
) |
|
$ |
(133,719 |
) |
|
$ |
(40,425 |
) |
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Denominator |
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Weighted-average common shares outstanding, basic |
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|
216,860,819 |
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|
|
102,707,509 |
|
|
|
42,614,197 |
|
Weighted-average common shares outstanding, diluted |
|
|
216,860,819 |
|
|
|
102,707,509 |
|
|
|
42,614,197 |
|
Loss from continuing operations per common share attributable to common shareholders |
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Basic |
|
$ |
(0.69 |
) |
|
$ |
(1.30 |
) |
|
$ |
(0.95 |
) |
Diluted |
|
$ |
(0.69 |
) |
|
$ |
(1.30 |
) |
|
$ |
(0.95 |
) |
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|
Discontinued Operations |
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Numerator |
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|
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|
|
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Loss income from discontinued operations |
|
$ |
— |
|
|
$ |
(4,429 |
) |
|
$ |
(17,237 |
) |
Denominator |
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding, basic |
|
|
216,860,819 |
|
|
|
102,707,509 |
|
|
|
42,614,197 |
|
Dilutive impact of stock options and other share-based awards |
|
|
— |
|
|
|
— |
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|
|
— |
|
Weighted-average common shares outstanding, diluted |
|
|
216,860,819 |
|
|
|
102,707,509 |
|
|
|
42,614,197 |
|
Loss on discontinued operations per common share attributable to common shareholders |
|
|
|
|
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|
Basic |
|
$ |
— |
|
|
$ |
(0.04 |
) |
|
$ |
(0.40 |
) |
Diluted |
|
$ |
— |
|
|
$ |
(0.04 |
) |
|
$ |
(0.40 |
) |
|
| Schedule of Potentially Dilutive Securities |
The number of shares that were not included in the calculation of net loss per diluted share because to do so would have been anti-dilutive, or for preferred stock, because the conversion contingency associated with the change in control had not occurred, and the contingency was not resolved for the years ended September 30, 2024, 2023 and 2022 are as follows:
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For the Year
Ended September 30, |
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2024 |
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2023 |
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2022 |
|
Restricted stock awards |
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1,383,425 |
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|
- |
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5,448,548 |
|
Stock options |
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|
169,636 |
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|
11,087 |
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|
1,418,938 |
|
Warrants |
|
|
12,419 |
|
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|
62 |
|
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|
202,220 |
|
Contingently issuable shares |
|
|
- |
|
|
|
289,549 |
|
|
|
- |
|
Series A preferred stock conversion |
|
|
5,250,000 |
|
|
|
5,250,000 |
|
|
|
5,250,000 |
|
Total anti-dilutive shares |
|
|
6,815,480 |
|
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5,550,698 |
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12,319,706 |
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|
| 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:
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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. |
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| Schedule of Finite Lived Intangible Assets Useful Lives |
The Company amortizes intangible assets with finite lives over their estimated useful lives as follows:
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Useful life (years) |
Websites |
|
3 |
Software |
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5 |
Strategic contract |
|
5 |
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| Schedule of Impairment Loss |
During the years ended September 30, 2024, 2023 and 2022, the Company incurred the following impairment losses related to bitcoin and goodwill:
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Years ended September 30, |
|
($ in thousands) |
|
2024 |
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2023 |
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2022 |
|
Impairment of bitcoin |
|
$ |
— |
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|
$ |
7,163 |
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|
$ |
12,210 |
|
Impairment of goodwill |
|
|
— |
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|
— |
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|
|
12,048 |
|
Total impairment loss |
|
$ |
— |
|
|
$ |
7,163 |
|
|
$ |
24,258 |
|
|
| Schedule of Segment Wise Goodwill Activity |
The following table reflects goodwill activity for the years ended September 30, 2024, 2023 and 2022, respectively:
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For the year ended September 30, |
|
($ in thousands) |
|
2024 |
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2023 |
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2022 |
|
Beginning of year balance |
|
$ |
8,043 |
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|
$ |
— |
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|
$ |
12,048 |
|
Acquisitions |
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|
— |
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|
8,043 |
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|
— |
|
Impairment |
|
|
— |
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— |
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|
(12,048 |
) |
End of year balance |
|
$ |
8,043 |
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|
$ |
8,043 |
|
|
$ |
— |
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|
| 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 Consolidated Balance Sheets on a recurring basis, and their level within the fair value hierarchy as of September 30, 2024 and September 30, 2023:
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|
September 30, 2024 |
|
($ in thousands) |
|
Amount |
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|
Level 1 |
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Level 2 |
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Level 3 |
|
Cash equivalents(1) |
|
$ |
120,639 |
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|
$ |
120,639 |
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|
$ |
— |
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|
$ |
— |
|
Receivable from bitcoin collateral(2) |
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|
77,827 |
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— |
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|
77,827 |
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— |
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Bitcoin |
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431,661 |
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|
431,661 |
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— |
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— |
|
ILAL derivative asset |
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|
1,932 |
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— |
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— |
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|
1,932 |
|
Investment in debt security |
|
|
918 |
|
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|
— |
|
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— |
|
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|
918 |
|
Interest rate swap derivative |
|
|
(100 |
) |
|
|
— |
|
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|
(100 |
) |
|
|
— |
|
Total |
|
$ |
632,877 |
|
|
$ |
552,300 |
|
|
$ |
77,727 |
|
|
$ |
2,850 |
|
(1) Represents money market funds. (2) See Note 12 - Loans for more information.
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September 30, 2023 |
|
($ in thousands) |
|
Amount |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
ILAL derivative asset |
|
$ |
2,697 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
2,697 |
|
Investment in debt security |
|
|
726 |
|
|
|
— |
|
|
|
— |
|
|
|
726 |
|
Total |
|
$ |
3,423 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
3,423 |
|
|