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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
 12 Months Ended
Sep. 30, 2023
Accounting Policies [Abstract]  
Schedule of Accounts Receivable

Accounts receivable, net consists of the following:

 

($ in thousands)

 

September 30,
2023

 

 

September 30,
2022

 

Accounts Receivable, gross

 

$

353

 

 

$

247

 

Provision for doubtful allowances

 

 

(348

)

 

 

(220

)

Total Accounts Receivable, net

 

$

5

 

 

$

27

 

 
Schedule of Earnings Per Share Basic and Diluted Provided below is the loss per share calculation for the years ended September 30, 2023 and 2022:

 

 

For the Year
Ended September 30,

 

 ($ in thousands, except share and per share)

 

2023

 

 

2022

 

Continuing Operations

 

 

 

 

 

 

Numerator

 

 

 

 

 

 

Loss from continuing operations

 

$

(132,160

)

 

$

(40,089

)

Preferred stock dividends

 

 

—

 

 

 

336

 

Loss from continuing operations attributable to common shareholders

 

$

(132,160

)

 

$

(40,425

)

 

 

 

 

 

 

 

Denominator

 

 

 

 

 

 

Weighted- average common shares outstanding,
   basic

 

 

102,707,509

 

 

 

42,614,197

 

Dilutive impact of stock options and other share-based awards

 

 

—

 

 

 

—

 

Dilutive impact of contingent shares issued for business acquisition

 

 

—

 

 

 

—

 

Weighted- average common shares outstanding,
   diluted

 

 

102,707,509

 

 

 

42,614,197

 

Loss from continuing operations per common share attributable to common shareholders

 

 

 

 

 

 

Basic

 

$

(1.29

)

 

$

(0.95

)

Diluted

 

$

(1.29

)

 

$

(0.95

)

 

 

 

 

 

 

Discontinued Operations

 

 

 

 

 

 

Numerator

 

 

 

 

 

 

Loss on discontinued operations

 

$

(4,429

)

 

$

(17,237

)

Denominator

 

 

 

 

 

 

Weighted- average common shares outstanding,
   basic

 

 

102,707,509

 

 

 

42,614,197

 

Dilutive impact of stock options and other share-based awards

 

 

—

 

 

 

—

 

Dilutive impact of contingent shares issued for business acquisition

 

 

—

 

 

 

—

 

Weighted- average common shares outstanding,
   diluted

 

 

102,707,509

 

 

 

42,614,197

 

Loss on discontinued operations per common share attributable to common shareholders

 

 

 

 

 

 

Basic

 

$

(0.04

)

 

$

(0.40

)

Diluted

 

$

(0.04

)

 

$

(0.40

)
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:

 

 

 

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 - 5

Mining equipment

 

3 - 15

Infrastructure asset

 

Shorter of lease term or 15 years

Machinery and equipment

 

3 - 10

Furniture and fixtures

 

1 - 5
Schedule of Impairment Loss

During the years ended September 30, 2023 and 2022, the Company incurred the following impairment losses:

 

 ($ in thousands)

 

September 30, 2023

 

 

September 30, 2022

 

Impairment of bitcoin

 

$

7,163

 

 

$

12,210

 

Impairment of goodwill

 

 

—

 

 

 

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, 2023 and 2022, respectively:

 

 ($ in thousands)

 

 

 

 

 

 

 

 

For the year ended September 30,

 

 

 

2023

 

 

2022

 

 Balance at beginning of Fiscal Year

 

$

—

 

 

$

12,048

 

 New Acquisitions

 

 

8,043

 

 

 

—

 

 Impairment

 

 

—

 

 

 

(12,048

)

 Balance at end of Fiscal Year

 

$

8,043

 

 

$

—

 
Schedule of Finite Lived Intangible Assets Useful Lives

The Company amortizes intangible assets with finite lives over their estimated useful lives, which range between two and twenty years as follows:

 

 

Useful life (years)

Websites

 

3

Software

 

4-7

Strategic contract

 

5
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, 2023 and September 30, 2022:

September 30, 2023:

 

September 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

Amount

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Derivative investment asset

 

$

2,697

 

 

$

—

 

 

$

—

 

 

$

2,697

 

Investment in debt security

 

 

726

 

 

 

—

 

 

 

—

 

 

 

726

 

Total

 

$

3,423

 

 

$

—

 

 

$

—

 

 

$

3,423

 

 

September 30, 2022:

 

September 30, 2022

 

 

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

Amount

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Derivative investment asset

 

$

2,956

 

 

$

—

 

 

$

—

 

 

$

2,956

 

Investment in debt security

 

 

610

 

 

 

—

 

 

 

—

 

 

 

610

 

Total

 

$

3,566

 

 

$

—

 

 

$

—

 

 

$

3,566