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14. DISCONTINUED OPERATIONS | 9 Months Ended
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Jun. 30, 2022
Discontinued Operations and Disposal Groups [Abstract] |
DISCONTINUED OPERATIONS | 14. DISCONTINUED OPERATIONS The Company determined to make available for sale the asset groups related to the energy segment due to its strategic shift to strictly focus on its bitcoin mining operations. As a result, the Energy segments' results of operations have been reclassified as discontinued operations on a retrospective basis for all periods presented. Accordingly, the assets and liabilities of this segment are separately reported as “assets and liabilities held for sale” as of June 30, 2022 in the consolidated balance sheets. The results of operations of this segment, for all periods, are separately reported as “discontinued operations” in the consolidated statements of operations and comprehensive loss. Provided below are the key areas of the financials that constitute the discontinued operations:
|  | June 30, 2022 (Unaudited) |  |  | September 30, 2021 |
ASSETS |  |  |  |  |  |
Current assets |  |  |  |  |  |
Accounts receivable, net |  | $ | 3,412,432 |  |  | $ | 2,312,890 |
Inventory |  |  | 1,300,609 |  |  |  | 2,592,933 |
Prepaid expense and other current assets |  |  | 4,116,687 |  |  |  | 2,991,244 |
Total current assets held for sale |  | $ | 8,829,728 |  |  | $ | 7,897,067 |
Property and equipment, net |  |  | 11,284 |  |  |  | 197,004 |
Intangible assets, net |  |  | 828,340 |  |  |  | 2,785,736 |
Goodwill |  |  | — |  |  |  | 7,000,779 |
Total assets held for sale |  | $ | 9,669,352 |  |  | $ | 17,880,586 |
LIABILITIES |  |  |  |  |  |
Current liabilities |  |  |  |  |  |
Accounts payable and accrued liabilities |  | $ | 877,304 |  |  | $ | 992,746 |
Contract liabilities |  |  | 134,507 |  |  |  | 296,964 |
Finance lease liability |  |  | — |  |  |  | 10,388 |
Total current liabilities held for sale |  |  | 1,011,811 |  |  |  | 1,300,098 |
Long-term liabilities |  |  |  |  |  |
Finance lease liability, net of current portion |  |  | — |  |  |  | 35,629 |
Total liabilities held for sale |  | $ | 1,011,811 |  |  | $ | 1,335,727 |
|  | For the three months ended |  |  | For the nine months ended |
|  | June 30, 2022 |  |  | June 30, 2021 |  |  | June 30, 2022 |  |  | June 30, 2021 |
Revenues, net |  |  |  |  |  |  |  |  |  |  |  |
Energy hardware, software and services revenue |  | $ | 601,001 |  |  | $ | 2,863,997 |  |  | $ | 9,157,184 |  |  | $ | 4,985,062 |
Total revenues, net |  |  | 601,001 |  |  |  | 2,863,997 |  |  |  | 9,157,184 |  |  |  | 4,985,062 |
Costs and expenses |  |  |  |  |  |  |  |  |  |  |  |
Cost of revenues (exclusive of depreciation and amortization shown below) |  |  | 658,890 |  |  |  | 2,701,536 |  |  |  | 7,317,012 |  |  |  | 4,566,077 |
Professional fees |  |  | 1,257 |  |  |  | 107,747 |  |  |  | 63,819 |  |  |  | 381,497 |
Payroll expenses |  |  | 1,172,738 |  |  |  | 870,834 |  |  |  | 4,005,599 |  |  |  | 2,988,328 |
General and administrative expenses |  |  | 520,574 |  |  |  | 235,999 |  |  |  | 996,595 |  |  |  | 685,089 |
Impairment expense - fixed assets |  |  | 31,833 |  |  |  | — |  |  |  | 31,833 |  |  |  | — |
Impairment expense - intangibles |  |  | 1,402,016 |  |  |  | — |  |  |  | 1,402,016 |  |  |  | — |
Impairment expense - other |  |  | 2,144,284 |  |  |  | — |  |  |  | 2,144,284 |  |  |  | — |
Impairment expense - goodwill |  |  | 7,000,779 |  |  |  | — |  |  |  | 7,000,779 |  |  |  | — |
Depreciation and amortization |  |  | 771,695 |  |  |  | 1,549,308 |  |  |  | 2,282,440 |  |  |  | 3,329,075 |
Total costs and expenses |  |  | 13,704,066 |  |  |  | 5,465,424 |  |  |  | 25,244,377 |  |  |  | 11,950,066 |
Loss from operations |  |  | (13,103,065 | ) |  |  | (2,601,427 | ) |  |  | (16,087,193 | ) |  |  | (6,965,004 | )
Other income (expense) |  |  |  |  |  |  |  |  |  |  |  |
Other income |  |  | — |  |  |  | 27 |  |  |  | — |  |  |  | 782 |
Interest expense |  |  | (1,082 | ) |  |  | (732 | ) |  |  | (2,800 | ) |  |  | (3,039 | )
Total other income (expense) |  |  | (1,082 | ) |  |  | (705 | ) |  |  | (2,800 | ) |  |  | (2,257 | )
Loss before income tax (expense) or benefit |  |  | (13,104,147 | ) |  |  | (2,602,132 | ) |  |  | (16,089,993 | ) |  |  | (6,967,261 | )
Income tax (expense) or benefit |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Net loss |  | $ | (13,104,147 | ) |  | $ | (2,602,132 | ) |  | $ | (16,089,993 | ) |  | $ | (6,967,261 | )
|  | Nine Months Ended |
|  | June 30, 2022 |  |  | June 30, 2021 |
Cash Flows from Operating Activities |  |  |  |  |  |
Net loss |  | $ | (16,089,993 | ) |  | $ | (6,967,261 | )
Adjustments to reconcile net loss to net cash used in operating activities: |  |  |  |  |  |
Impairment of goodwill |  |  | 7,000,779 |  |  |  | — |
Impairment of fixed assets |  |  | 31,833 |  |  |  | — |
Impairment of intangibles |  |  | 1,402,016 |  |  |  | — |
Impairment related to working capital |  |  | 2,144,284 |  |  |  | — |
Non-cash lease expense |  |  | — |  |  |  | 40,711 |
Depreciation and amortization |  |  | 2,282,440 |  |  |  | 3,329,075 |
Changes in operating assets and liabilities |  |  |  |  |  |
Decrease in operating lease right of use liabilities |  |  | — |  |  |  | 513,375 |
Decrease (increase) in contract assets, net |  |  | (162,456 | ) |  |  | (5,500 | )
Increase (decrease) in accounts payable and accrued liabilities |  |  | (115,442 | ) |  |  | 3,845,536 |
(Increase) in prepaid expenses and other current assets |  |  | (1,848,801 | ) |  |  | (2,200,226 | )
(Increase) in accounts receivables |  |  | (1,898,084 | ) |  |  | (937,789 | )
Decrease (Increase) in Inventory |  |  | 669,938 |  |  |  | (3,636,107 | )
Change in intercompany receivables and payables |  |  | 6,583,486 |  |  |  | 6,018,186 |
Net cash used in operating activities |  | $ | - |  |  | $ | - |

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI https://asc.fasb.org/topic&trid=2155823 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI https://asc.fasb.org/subtopic&trid=2122178 + Details
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