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4. DISCONTINUED OPERATIONS | 9 Months Ended
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Jun. 30, 2023
Discontinued Operations and Disposal Groups [Abstract] |
DISCONTINUED OPERATIONS | 4. 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 segment's 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 Company has since sold the majority of its software and intellectual property assets related to the energy segment and is in the process of selling additional remaining inventory and assets. The results of operations of this segment, for all periods, are separately reported as “discontinued operations” in the consolidated statements of operations and comprehensive income (loss). In February 2023, the Company entered into an agreement to sell the remaining battery and solar inventory pertaining to the discontinued operations of Solar Watt Solutions Inc. The sale price was $4,600 and consists of a receivable from the buyer that will be paid to the Company as inventory is utilized and sold by the buyer, but such receivable will be required to be paid in full within the earlier of the sellout of the purchased inventory or 18 months. However, the criteria has not been met to recognize a gain or loss on the disposal of inventory held for sale. The Company will recognize a gain or loss in future periods when the inventory has been disposed of under the sales agreement. In November 2022, the Company sold certain software rights and assets that were classified as assets held for sale for a net sales price of $2,523 with a carrying amount of $813 resulting in a recognized gain of $1,710. Provided below are the key areas of the financials that constitute the discontinued operations:
|  | June 30, 2023 |  |  | September 30, 2022 |
ASSETS |  |  |  |  |  |
Current assets |  |  |  |  |  |
Accounts receivable, net |  | $ | 509 |  |  | $ | 2,813 |
Inventory |  |  | 4,400 |  |  |  | 4,400 |
Prepaid expense and other current assets |  |  | 10 |  |  |  | 213 |
Total current assets held for sale |  | $ | 4,919 |  |  | $ | 7,426 |
Property and equipment, net |  |  | 11 |  |  |  | 11 |
Operating lease right of use asset |  |  | 541 |  |  |  | 665 |
Intangible assets, net |  |  | — |  |  |  | 869 |
Long-term assets held for sale |  | $ | 552 |  |  | $ | 1,545 |
Total assets held for sale |  | $ | 5,471 |  |  | $ | 8,971 |
LIABILITIES |  |  |  |  |  |
Current liabilities |  |  |  |  |  |
Accounts payable and accrued liabilities |  | $ | 176 |  |  | $ | 919 |
Contract liabilities |  |  | — |  |  |  | 117 |
Operating lease liability |  |  | 172 |  |  |  | 163 |
Total current liabilities held for sale |  |  | 348 |  |  |  | 1,199 |
Long-term liabilities |  |  |  |  |  |
Operating lease liability, net of current portion |  |  | 382 |  |  |  | 512 |
Total liabilities held for sale |  | $ | 730 |  |  | $ | 1,711 |
|  | For the three months ended |  |  | For the nine months ended |
|  | June 30, 2023 |  |  | June 30, 2022 |  |  | June 30, 2023 |  |  | June 30, 2022 |
Revenues, net |  |  |  |  |  |  |  |  |  |  |  |
Energy hardware, software and services revenue |  | $ | 11 |  |  | $ | 600 |  |  | $ | 140 |  |  | $ | 9,157 |
Total revenues, net |  |  | 11 |  |  |  | 600 |  |  |  | 140 |  |  |  | 9,157 |
Costs and expenses |  |  |  |  |  |  |  |  |  |  |  |
Cost of revenues (exclusive of depreciation and amortization shown below) |  |  | 41 |  |  |  | 712 |  |  |  | 129 |  |  |  | 7,317 |
Professional fees |  |  | 9 |  |  |  | 1 |  |  |  | 113 |  |  |  | 64 |
Payroll expenses |  |  | 68 |  |  |  | 715 |  |  |  | 376 |  |  |  | 4,006 |
General and administrative expenses |  |  | (8 | ) |  |  | 520 |  |  |  | 76 |  |  |  | 996 |
Impairment expense - fixed assets |  |  |  |  |  | 32 |  |  |  | — |  |  |  | 32 |
Impairment expense - intangibles |  |  |  |  |  | 1,402 |  |  |  | — |  |  |  | 1,402 |
Impairment expense - other |  |  | — |  |  |  | 2,144 |  |  |  | 100 |  |  |  | 2,144 |
Impairment expense - goodwill |  |  |  |  |  | 7,001 |  |  |  | — |  |  |  | 7,001 |
Depreciation and amortization |  |  |  |  |  | 801 |  |  |  | — |  |  |  | 2,282 |
Total costs and expenses |  |  | 110 |  |  |  | 13,328 |  |  |  | 794 |  |  |  | 25,244 |
Loss from operations |  | $ | (99 | ) |  | $ | (12,728 | ) |  | $ | (654 | ) |  | $ | (16,087 | )
Other income (expense) |  |  |  |  |  |  |  |  |  |  |  |
Gain on disposal of assets |  |  | — |  |  |  | — |  |  |  | 1,721 |  |  |  | — |
Interest expense |  |  | (3 | ) |  |  | (1 | ) |  |  | (6 | ) |  |  | (3 | )
Total other income (expense) |  |  | (3 | ) |  |  | (1 | ) |  |  | 1,715 |  |  |  | (3 | )
(Loss) Income before income tax (expense) or benefit |  |  | (102 | ) |  |  | (12,729 | ) |  |  | 1,061 |  |  |  | (16,090 | )
Income tax benefit (expense) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Net (loss) income attributable to common shareholders |  | $ | (102 | ) |  | $ | (12,729 | ) |  | $ | 1,061 |  |  | $ | (16,090 | )

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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 -Topic 205 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//205-20/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 360 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//360/tableOfContent + Details
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