CLEANSPARK, INC. Leases Disclosure
9. LEASES
On October 1, 2019, the Company adopted the amendments to ASC 842, leases which require lessees to recognize lease assets and liabilities arising from operating leases on the balance sheet. The Company adopted the new lease guidance using the modified retrospective approach and elected the transition option issued under ASU 2018-11, Leases (Topic 842) Targeted Improvements, allowing entities to continue to apply the legacy guidance in ASC 840, Leases, to prior periods, including disclosure requirements.
The Company’s operating leases are office spaces and finance leases which are primarily related to equipment used at its data center.
The Company's lease costs recognized in the Consolidated Statements of Operations and Comprehensive Loss consist of the following:
|
|
For the year ended |
|
|||||
($ in thousands) |
|
September 30, |
|
|
September 30, |
|
||
Operating lease cost (1) |
|
$ |
267 |
|
|
$ |
113 |
|
Finance lease cost: |
|
|
|
|
|
|
||
Depreciation expense of financed assets |
|
$ |
197 |
|
|
$ |
379 |
|
Interest on lease obligations |
|
$ |
33 |
|
|
$ |
38 |
|
Other lease information is as follows:
|
|
For the year ended |
|
|||||
($ in thousands) |
|
September 30, |
|
|
September 30, |
|
||
Cash paid for amounts included in |
|
|
|
|
|
|
||
Operating cash outflows from operating leases |
|
$ |
274 |
|
|
$ |
131 |
|
Operating cash outflows from finance leases |
|
$ |
33 |
|
|
$ |
38 |
|
Financing cash outflows from finance leases |
|
$ |
301 |
|
|
$ |
519 |
|
|
|
September 30, |
|
|
September 30, |
|
||
Weighted-average remaining lease term - |
|
3.8 years |
|
|
1.5 years |
|
||
Weighted-average remaining lease term - |
|
0.9 years |
|
|
1.5 years |
|
||
Weighted-average discount rate - operating leases |
|
|
5.40 |
% |
|
|
4.50 |
% |
Weighted-average discount rate - finance leases |
|
|
5.50 |
% |
|
|
5.50 |
% |
The following is a schedule of the Company's lease liabilities by contractual maturity as of September 30, 2023:
($ in thousands) |
|
Operating |
|
|
Finance |
|
||
2024 |
|
$ |
214 |
|
|
$ |
134 |
|
2025 |
|
|
201 |
|
|
|
9 |
|
2026 |
|
|
203 |
|
|
|
— |
|
2027 |
|
|
106 |
|
|
|
— |
|
2028 |
|
|
41 |
|
|
|
— |
|
Gross lease liabilities |
|
|
765 |
|
|
|
143 |
|
Less: imputed interest |
|
|
(65 |
) |
|
|
(3 |
) |
Present value of lease liabilities |
|
$ |
700 |
|
|
$ |
140 |
|
Less: Current portion of lease liabilities |
|
|
(181 |
) |
|
|
(130 |
) |
Total lease liabilities, net of current portion |
|
$ |
519 |
|
|
$ |
10 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2023 | Dec 1, 2023 | Showing above |
| 2022 | Dec 15, 2022 | |
| 2020 | Dec 17, 2020 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.