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Acquisitions

12 Months Ended

Dec. 31, 2022

NOTE 4:-

ACQUISITIONS

Tasmania Data Infrastructure Pty Ltd

During June 2022 the Company, through its wholly owned subsidiary Mawson AU Limited entered into a License and Services Agreement with Tasmania Data Infrastructure Pty Ltd (“TDI”) in exchange for 42,562,432 fully paid issued shares in TDI.

Mawson AU Limited entered into a further sale agreement during September 2022 to sell a MDC to TDI in exchange for a further 10,000,000 fully paid issued shares in TDI.

Mawson AU Limited entered into a further agreement with TDI during November 2022 to sell a 2,144 ASIC Bitcoin Miners to TDI in exchange for a further 107,042,254 fully paid issued shares in TDI, this sale was effective on November 23, 2022.

Consideration:
($ in thousands)	Fair Value
Intellectual property, and Equipment	$	4,159,452
Total Consideration	$	4,159,452
Less impairment	$	(2,060,779	)
Total		2,098,673

	Preliminary
	Allocation at
Purchase Price Allocation	Acquisition
($ in thousands)	Date
Other assets	$	170,771
Equipment		1,453,529
Intellectual property		505,417
Payables		(31,044	)
Total	$	2,098,673

From November 23, 2022, Mawson AU Limited became a 34.9% shareholder of TDI and therefore was accounted for as an equity investment from this date under ASC 323 Investments – Equity Method and Joint Ventures (ASC 323). Prior to November 23, 2022, when Mawson did not have significant control of TDI it was accounted at fair value using ASC 321 Investments — Equity Securities (ASC 321).

An impairment to the investment in TDI was recognized of $2.06 million.