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ORGANIZATION AND LINE OF BUSINESS
12 Months Ended
Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization and Line of Business

1. ORGANIZATION AND LINE OF BUSINESS

 

Organization

CleanSpark, Inc. (the "Company") was incorporated in the state of Nevada on October 15, 1987 as SmartData Corporation. SmartData conducted a 504 public offering in the State of Nevada in December 1987 and began trading publicly in January 1988. Due to a series of unfortunate events, including the untimely death of the founding CEO, SmartData discontinued active business operations in 1992.

 

On March 25, 2014, the Company entered into an Asset and Intellectual Property Purchase Agreement pursuant to which the Company acquired: (i) all Intellectual Property rights, title and interest in Patent # 8,105,401 'Parallel Path, Downdraft Gasifier Apparatus and Method' and Patent # 8,518,133 'Parallel Path, Downdraft Gasifier Apparatus and Method' and (ii) all of the Property rights, title and interest in a 32 inch Downdraft Gasifier ("Gasifier”) and (iii) assumed of $156,900 in liabilities.

 

In December 2014, we changed our company name to Stratean Inc. through a short-form merger in order to better reflect our new business plan.

 

On July 1, 2016, the Company entered into an Asset Purchase Agreement, as amended (the “Purchase Agreement”), with CleanSpark Holdings LLC, CleanSpark LLC, CleanSpark Technologies LLC and Specialized Energy Solutions, Inc. (together, the “Seller”). Pursuant to the Purchase Agreement, the Company acquired CleanSpark, LLC and all the assets related to Seller and its line of business and assumed $200,000 in liabilities.

 

In October 2016, we changed our company name to CleanSpark, Inc. through a short-form merger in order to better reflect our brand identity.

 

Line of Business

Through the acquisition of CleanSpark, LLC, the Company provides microgrid solutions to military, commercial and residential properties.

 

Our services consist of intelligent solar monitoring solutions, microgid design and engineering, project development consulting services, System installation and consulting, and turn-key microgrid implementation services. The work is performed under fixed price bid contracts, negotiated price contracts, fully financed power purchase agreements, or energy services agreements such as Microgrid as a Service (MaaS). 

 

We also continue to pursue the development of our gasification technologies for commercial deployment. We have been granted multiple patents protecting what we believe to be a breakthrough design for the next generation in waste-to-energy technology. The increased efficiency compared to existing solutions results in a significantly lower cost per watt of electricity produced. We have completed a commercial prototype and have completed preliminary testing and we are currently working with our manufacturing partners to improve durability and efficiency. Upon completion of product development, we intend to deploy our gasification solutions to our pipeline of commercial microgrid customers in order maximize the conversion of our customer waste streams into electricity.