CLEANSPARK, INC. Segments Disclosure
17. SEGMENT REPORTING
We disclose segment information that is consistent with the way in which management operates and views the business. Our operating structure contains two reportable segments: Digital Currency and Energy. The Company measures the results of its segments using, among other measures, each segment's sales and operating income, which includes certain corporate overhead allocations.
Digital Currency. This segment consists of operation related to Bitcoin mining. The Company provides computing power through ATL Data Centers LLC and CleanBlok Inc. to the mining pools. This segment also includes operation related to maintenance of real property holdings for company purposes through CSRE properties Norcross LLC and CSRE properties LLC. This segment revenue represents fractional share of the fixed cryptocurrency award received from the mining pool operator in exchange of computing power.
Energy. This segment provides services, equipment, and software to the energy industry. This segment includes revenue from providing engineering and construction services, selling equipment such as residential battery, residential solar, commercial solar and non-customized equipment and providing access to its energy software offerings and software license sales and support services.
Corporate and Other. This includes revenue from providing design, software development, and other technology-based consulting services through p2k Labs and data center services through ATL Data Center.
We allocate expenses related to corporate activities to the segments, and corporate overhead to CleanSpark Inc. Corporate Items and eliminations consist of corporate overhead and other items not allocated to any of the Company's segments as in the table below. Intersegment transactions, which were at market price, are included in the “Other revenue and eliminations” and “Corporate items and eliminations” in the table below.
| September 30, 2021 | September 30, 2020 | ||||||
| Revenue | |||||||
| Energy | $ | 9,002,636 | $ | 9,018,023 | |||
| Digital Currency Mining | 38,846,633 | ||||||
| Total segment revenues | 47,849,269 | 9,018,023 | |||||
| Other revenue and eliminations | 1,588,846 | 1,010,678 | |||||
| Consolidated Revenues | 49,438,115 | 10,028,701 | |||||
| Profit | |||||||
| Energy | (8,111,138 | ) | (13,554,515) | ||||
| Digital Currency Mining | 23,198,270 | ||||||
| Total segment profit/(loss) | 15,087,132 | (13,554,515) | |||||
| Corporate items and eliminations (including depreciation and amortization) | (36,899,142 | ) | (9,791,628) | ||||
| Net loss | $ | (21,812,010 | ) | $ | (23,346,143) |
For details on major customers of Digital currency and Energy segment, see Note 16.
A summary of segment assets is as follows:
| September 30, 2021 | September 30, 2020 | ||||||
| Digital Currency Mining | $ | 270,995,942 | $ | ||||
| Energy | $ | 17,507,314 | $ | 13,621,190 | |||
| Other and Corporate assets | $ | 28,969,865 | $ | 8,718,873 | |||
| Total | $ | 317,473,121 | $ | 22,340,063 | |||
The Company has its geographic operations only in United States.
Total additions in long-lived assets during the years ended September 30, 2021 and 2020:
| September 30,2021 | September 30,2020 | ||||||||||||||||||||||
| Digital Currency | Energy | Corporate | Digital Currency | Energy | Corporate | ||||||||||||||||||
| Property Plant and Equipment | $ | 144,743,498 | $ | 212,178 | $ | 972 | $ | $ | 28,937 | $ | 18,108 | ||||||||||||
| Intangibles | 9,881,838 | 190,000 | 1,381,633 | 833,000 | |||||||||||||||||||
| Capitalized software | 84,924 | ||||||||||||||||||||||
| Total | $ | 154,625,336 | $ | 402,178 | $ | 972 | $ | — | $ | 1,495,494 | $ | 851,108 | |||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2021 | Dec 14, 2021 | Showing above |
| 2020 | Dec 17, 2020 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.