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Property and Equipment
 12 Months Ended
Dec. 31, 2022
Property, Plant and Equipment [Abstract]  
PROPERTY AND EQUIPMENT
NOTE 6:- PROPERTY AND EQUIPMENT

 

Property and equipment, net, consisted of the following:

 

   December 31,
2022		   December 31,
2021		 
         
Plant and equipment   4,263,662    1,046,866 
Computer equipment   163,060    216,099 
Furniture & fixtures   29,492    31,474 
Processing machines (Miners)   103,337,719    81,341,098 
Modular data center   19,713,534    9,819,796 
Motor Vehicles   326,704    250,425 
Transformers   8,886,576    1,190,609 
Low-cost assets   995,292    246,154 
Assets under construction   11,592,582    1,008,001 
Leasehold improvements   487,527    
-
 
Total   149,796,148    95,150,522 
Less: Accumulated depreciation   (54,489,966)   (18,213,672)
Reclassification to assets held for sale (NOTE 8)   (4,289,684)   
-
 
Property and equipment, net   91,016,498    76,936,850 

 

The Company incurred depreciation and amortization expense in the amounts of $63,200,178 and $14,113,730 for the year ended December 31, 2022 and December 31, 2021, respectively. The company changed its estimate of the useful life of its Miners with effect from December 1, 2022 to better reflect the pattern of consumption, the change was effected by changing the method of depreciation from reducing balance to the straight line method from that date. The effect of this is to increase the depreciation charge in the period by $5.29 million to $63.20 million. The effect on loss per share in the period is a change from $3.74 per share to $4.16 per share.

 

There were impairment charges recognized for processing machines of $5.45 million for year ended December 31, 2022, these assets were disposed of as part of the sale of the Georgia site to CleanSpark. There was $nil impairment charges for the year ended December 31, 2021. There was a write-off of miners amounting to $1.56 million during the year to December 2022.

 

The reclassification of property and equipment to assets held for sale is in relation to the sale of Luna Squares Texas LLC to BMF HOLDING GP PTE.LTD., refer to NOTE 8 for further details.

 

During the year ended December 31, 2022, $32.05 million cash was paid for equipment which was recorded as either a deposit or within property plant and equipment on the balance sheet.