Cover
Cover - shares | 3 Months Ended | |
Dec. 31, 2020 | Feb. 10, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document period end date | Dec. 31, 2020 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2021 | |
Current Fiscal Year End Date | --09-30 | |
Entity File Number | 001-39187 | |
Entity Registrant Name | CleanSpark, Inc. | |
Entity Central Index Key | 0000827876 | |
Entity Tax Identification Number | 87-0449945 | |
Entity Incorporation, State or Country Code | NV | |
Entity Address, Address Line One | 1185 S. 1800 W. | |
Entity Address, Address Line Two | Suite 3 | |
Entity Address, City or Town | Woods Cross | |
Entity Address, State or Province | UT | |
Entity Address, Postal Zip Code | 84087 | |
City Area Code | (702) | |
Local Phone Number | 941-8047 | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Trading Symbol | CLSK | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 24,232,523 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2020 | Sep. 30, 2020 |
Current assets | ||
Cash | $ 25,631,913 | $ 3,126,202 |
Accounts receivable, net | 1,624,648 | 1,047,353 |
Contract assets | 906 | 4,103 |
Inventory | 276,750 | |
Prepaid expense and other current assets | 3,383,440 | 998,931 |
Digital Currency | 407,441 | |
Derivative investment asset | 1,094,775 | 2,115,269 |
Investment equity security | 386,500 | 460,000 |
Investment debt security, AFS, at fair value | 500,000 | 500,000 |
Total current assets | 33,306,373 | 8,251,858 |
Fixed assets, net | 6,484,137 | 117,994 |
Operating lease right of use asset | 865,441 | 40,711 |
Capitalized software, net | 936,917 | 976,203 |
Intangible assets, net | 13,640,421 | 7,049,656 |
Goodwill | 20,108,887 | 5,903,641 |
Total assets | 78,172,736 | 22,340,063 |
Current liabilities | ||
Accounts payable and accrued liabilities | 2,936,049 | 4,527,037 |
Contract liabilities | 63,603 | 64,198 |
Operating lease liability | 609,475 | 41,294 |
Finance lease liability | 235,688 | |
Contingent consideration | 750,000 | 750,000 |
Total current liabilities | 4,594,815 | 5,382,529 |
Long-term liabilities | ||
Loans payable | 531,169 | 531,169 |
Operating lease liability, non-current | 255,966 | |
Finance lease liability, non-current | 755,696 | |
Total liabilities | 6,137,646 | 5,913,698 |
Stockholders' equity | ||
Preferred stock; $0.001 par value; 10,000,000 shares authorized; Series A shares; 2,000,000 authorized; 1,750,000 and 1,750,000 issued and outstanding as of December 31, 2020 and September 30, 2020, respectively | 1,750 | 1,750 |
Common stock; $0.001 par value; 35,000,000 shares authorized; 24,070,531 and 17,390,979 shares issued and outstanding as of December 31, 2020 and September 30, 2020, respectively | 24,071 | 17,391 |
Additional paid-in capital | 195,579,405 | 132,809,830 |
Accumulated deficit | (123,570,136) | (116,402,606) |
Total stockholders' equity | 72,035,090 | 16,426,365 |
Total liabilities and stockholders' equity | $ 78,172,736 | $ 22,340,063 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2020 | Sep. 30, 2020 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 1,750,000 | |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 35,000,000 | 35,000,000 |
Common stock, shares issued | 24,070,531 | 17,390,979 |
Common stock, shares outstanding | 24,070,531 | 17,390,979 |
Common Class A [Member] | ||
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | 1,750,000 | 1,750,000 |
Preferred stock, shares outstanding | 1,750,000 | 1,750,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues, net | ||
Sale of goods revenues | $ 1,088,034 | $ 925,396 |
Service, software and related revenues | 436,126 | 51,428 |
Digital currency mining revenue | 733,410 | |
Total revenues, net | 2,257,570 | 976,824 |
Cost of revenues | ||
Product sale revenues | 1,014,931 | 784,574 |
Service, software and related revenues | 148,913 | 98,147 |
Cost of mining and data center revenue | 169,046 | |
Total cost of revenues | 1,332,890 | 882,721 |
Gross profit | 924,680 | 94,103 |
Operating expenses | ||
Professional fees | 1,712,723 | 1,516,587 |
Payroll expenses | 3,314,201 | 711,539 |
Product development | 39,286 | 39,287 |
General and administrative expenses | 950,139 | 230,661 |
Depreciation and amortization | 1,078,429 | 587,490 |
Total operating expenses | 7,094,778 | 3,085,564 |
Loss from operations | (6,170,098) | (2,991,461) |
Other income (expense) | ||
Other income | ||
Realized gain on sale of digital currency | 49,918 | |
Unrealized gain/(loss) on equity security | (73,500) | 368,868 |
Unrealized gain/(loss) on derivative security | (1,020,494) | 2,266,654 |
Interest income (expense) (net) | 46,644 | (1,560,315) |
Total other income (expense) | (997,432) | 1,075,207 |
Net loss | $ (7,167,530) | $ (1,916,254) |
Loss per common share - basic and diluted | $ (0.32) | $ (0.40) |
Weighted average common shares outstanding - basic and diluted | 22,146,992 | 4,781,075 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Sep. 30, 2019 | $ 1,000 | $ 4,679 | $ 111,936,125 | $ (93,056,463) | $ 18,885,341 |
Shares, Issued, Beginning Balance at Sep. 30, 2019 | 1,000,000 | 4,679,018 | |||
Shares issued for services | $ 750 | $ 2 | 33,348 | $ 34,100 | |
Stock Issued During Period, Shares, Issued for Services | 750,000 | 2,000 | 2,000 | ||
Options and warrants issued for services | 602,169 | $ 602,169 | |||
Stock Issued During Period, Shares, Other | |||||
Net loss | (1,916,254) | (1,916,254) | |||
Ending balance, value at Dec. 31, 2019 | $ 1,750 | $ 4,869 | 112,571,454 | (94,972,717) | 17,605,356 |
Shares, Issued, Ending Balance at Dec. 31, 2019 | 1,750,000 | 4,868,911 | |||
Shares issued upon conversion of debt and accrued interest | $ 187 | (187) | |||
Shares issued upon conversion of debt and accrued interest, shares | 187,100 | ||||
Shares issued for stock split | $ 1 | (1) | |||
Shares issued for stock split, shares | 793 | 793 | |||
Beginning balance, value at Sep. 30, 2020 | $ 1,750 | $ 17,391 | 132,809,830 | (116,402,606) | $ 16,426,365 |
Shares, Issued, Beginning Balance at Sep. 30, 2020 | 1,750,000 | 17,390,979 | |||
Shares issued for services | $ 501 | 3,011,133 | $ 3,011,634 | ||
Stock Issued During Period, Shares, Issued for Services | 501,437 | 43,188 | |||
Options and warrants issued for services | 1,339,009 | $ 1,339,009 | |||
Stock Issued During Period, Shares, Other | |||||
Shares issued for business acquisition | $ 1,618 | 21,181,733 | $ 21,183,351 | ||
Shares issued for business acquisition, shares | 1,618,285 | 1,618,285 | |||
Exercise of options and warrants, shares | $ 116 | 192,540 | $ 192,656 | ||
Exercise of options and warrants, shares | 115,385 | ||||
Shares issued under underwritten offering, net of offering costs | $ 4,445 | 37,045,160 | 37,049,605 | ||
Shares issued under underwritten offering, net of offering costs, shares | 4,444,445 | ||||
Net loss | (7,167,530) | (7,167,530) | |||
Stock Issued During Period, Shares, New Issues | |||||
Ending balance, value at Dec. 31, 2020 | $ 1,750 | $ 24,071 | $ 195,579,405 | $ (123,570,136) | $ 72,035,090 |
Shares, Issued, Ending Balance at Dec. 31, 2020 | 1,750,000 | 24,070,531 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | 15 Months Ended |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash Flows from Operating Activities | ||
Net loss | $ (7,167,530) | $ (1,916,254) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock based compensation | 4,350,643 | 636,269 |
Unrealized (gain) loss on equity security | 73,500 | (368,868) |
Realized gain on sale of digital currency | (49,918) | |
Amortization of operating lease right of use asset | 11,864 | 10,731 |
Depreciation and amortization | 1,078,429 | 626,777 |
Amortization of capitalized software | 39,286 | 39,286 |
Amortization of debt premium | (18,832) | |
Unrealized (gain) loss on derivative asset | 1,020,494 | (2,266,654) |
Amortization of debt discount | 1,512,174 | |
Changes in operating assets and liabilities | ||
Decrease (increase) in prepaid expenses and other current assets | (2,329,318) | 602,120 |
Decrease (increase) in contract assets | 3,197 | 28,560 |
(Increase) decrease in contract liabilities, net | (595) | 111,433 |
Increase in accounts receivable | (463,199) | 70,210 |
Increase (decrease) in accounts payable | (2,366,531) | 221,051 |
Increase in digital currency | (733,410) | |
Decrease in lease liability | (23,740) | (10,491) |
Increase in inventory | (276,750) | (145,932) |
Increase (decrease) in due to related parties | (16,966) | |
Net cash used in operating activities | (6,833,578) | (885,386) |
Cash Flows from investing | ||
Proceeds from sale of digital currencies | 375,887 | |
Investment in infrastructure development | (2,830,560) | |
Purchase of fixed assets | (19,082) | (9,447) |
Cash acquired from ATL acquisition | 45,783 | |
Investment in debt and equity securities | (500,000) | |
Net cash used in investing activities | (2,427,972) | (509,447) |
Cash Flows from Financing Activities | ||
Payments on promissory notes | (5,475,000) | (67,467) |
Proceeds from exercise of warrants | 192,656 | |
Proceeds from underwritten offering | 37,049,605 | |
Net cash received/(used) in financing activities | 31,767,261 | (67,467) |
Net increase (decrease) in Cash | 22,507,711 | (1,462,300) |
Cash, beginning of period | 3,126,202 | 7,838,857 |
Cash, end of period | 25,631,913 | 6,376,557 |
Supplemental disclosure of cash flow information | ||
Cash paid for interest | ||
Cash paid for tax | ||
Non-cash investing and financing transactions | ||
Day one recognition of right of use asset and liability | 85,280 | |
Shares and options issued for business acquisition | 21,183,351 | |
Cashless exercise of options/warrants | $ 74 |
1. ORGANIZATION AND LINE OF BUS
1. ORGANIZATION AND LINE OF BUSINESS | 3 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
1. ORGANIZATION AND LINE OF BUSINESS | 1. ORGANIZATION AND LINE OF BUSINESS Organ ization The Company - CleanSpark, Inc. CleanSpark, Inc. (“CleanSpark”, “we”, “our”, the "Company") was incorporated in the state of Nevada on October 15, 1987 under the name, SmartData Corporation. In October 2016, the Company changed its name to CleanSpark, Inc. in order to better reflect the Company’s brand identity. The Company, through itself and its wholly-owned subsidiaries, has operated in the alternative energy sector since March 2014, and in the digital currency mining sector since December 2020. Acquisitions Related to Subsidiaries and/or Assets of the Company CleanSpark, LLC On July 1, 2016, the Company entered into an Asset Purchase Agreement, as amended (the “Purchase Agreement”), with CleanSpark Holdings LLC, CleanSpark LLC, CleanSpark Technologies LLC and Specialized Energy Solutions, Inc. (together, the “Seller”). Pursuant to the Purchase Agreement, the Company acquired CleanSpark, LLC and all the assets related to the Seller and its line of business. CleanSpark Critical Power Systems, Inc. On January 22, 2019, CleanSpark entered into an agreement with Pioneer Critical Power, Inc., whereby it acquired certain intellectual property assets and client lists. As a result of the transaction Pioneer Critical Power Inc. became a wholly owned subsidiary of the Company. On February 1, 2019, Pioneer Critical Power, Inc. was renamed to CleanSpark Critical Power Systems, Inc. p2klabs, Inc. On January 31, 2020, the Company entered into a Stock Purchase Agreement with p2klabs, Inc (“p2k”), and its sole stockholder, whereby the Company purchased all of the issued and outstanding shares of p2k from its sole stockholder. As a result of the transaction, p2k became a wholly-owned subsidiary of the Company. GridFabric, LLC On August 31, 2020, the Company entered into a Membership Interest Purchase Agreement with GridFabric, LLC, (“GridFabric”), and its sole member, whereby the Company purchased all of the issued and outstanding membership units of GridFabric from its sole member. As a result of the transaction, GridFabric a wholly-owned subsidiary of the Company. ATL Data Centers LLC On December 9, 2020, the Company entered into an Agreement and Plan of Merger (the “Merger”) with ATL Data Centers LLC (“ATL”), and its members whereby the Company purchased all of the issued and outstanding membership units of ATL from its members. As a result of the transaction, ATL became a wholly-owned subsidiary of the Company. (See Note 3 for details.) Lines of Business Energy Business Segment Through CleanSpark, LLC, the Company provides microgrid engineering, design and software solutions to military, commercial and residential customers. Our services consist of distributed energy microgrid system engineering and design, and project consulting services. Through CleanSpark Critical Power Systems, Inc., the Company provides custom hardware solutions for distributed energy systems that serve military and commercial residential properties. The equipment is generally sold under negotiated fixed price contracts. Through GridFabric, the Company provides Open Automated Demand Response (“OpenADR”) and other middleware communication protocol software solutions to commercial and utility customers. Through ATL, the Company provides traditional data center services such as providing customers with rack space, power and equipment, and offers several cloud services including, virtual services, virtual storage, and data backup services. Digital Agency Segment Through p2kLabs, Inc., the Company provides design, software development, and other technology-based consulting services. The services provided are generally an hourly arrangement or fixed-fee project-based arrangements. Digital Currency Mining Segment Through ATL Data Centers, LLC, the Company mines digital assets, namely Bitcoin. |
2. SUMMARY OF SIGNIFICANT POLIC
2. SUMMARY OF SIGNIFICANT POLICIES | 3 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
2. SUMMARY OF SIGNIFICANT POLICIES | 2. SUMMARY OF SIGNIFICANT POLICIES Basis of Presentation and Liquidity The accompanying unaudited interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission, and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s most recent annual report on Form 10-K for the year ended September 30, 2020, filed with the SEC on December 17, 2020 (“Form 10-K”). In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim period presented in this quarterly report on Form 10-Q have been reflected herein. The results of operations for the interim period are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal period, as reported in the Form 10-K, have been omitted. The Company has incurred losses for the past several years while it develops its infrastructure and its software platforms. As shown in the accompanying unaudited consolidated financial statements, the Company incurred net losses of $7,167,530 minimum we $28,711,558 Principles of Consolidation The accompanying consolidated financial statements include the accounts of CleanSpark, Inc., and its wholly owned operating subsidiaries, CleanSpark, LLC, CleanSpark, II, LLC, CleanSpark Critical Power Systems Inc., p2kLabs, Inc, GridFabric, LLC, and ATL Data Centers LLC. All material intercompany transactions have been eliminated upon consolidation of these entities. Use of estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include estimates used to review the Company’s goodwill impairment, intangible assets acquired, impairments and estimations of long-lived assets, revenue recognition on percentage of completion type contracts, allowances for uncollectible accounts, and the valuations of non-cash capital stock issuances. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable in the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions including, but not limited to, the ultimate impact that COVID-19 may have on the Company’s operations. Revenue Recognition We did not have a cumulative impact as of October 1, 2019 due to the adoption of Topic 606. Our accounting policy on revenue recognition by type of revenue is provided below. Engineering, Service & Installation or Construction Contracts The Company recognizes engineering and construction contract revenue over time, as performance obligations are satisfied, due to the continuous transfer of control to the customer. Engineering and construction contracts are generally accounted for as a single unit of account (a single performance obligation) and are not segmented between types of services. The Company recognizes revenue based primarily on contract cost incurred to date compared to total estimated contract cost (an input method). The input method is the most faithful depiction of the Company’s performance because it directly measures the value of the services transferred to the customer. Customer-furnished materials, labor, and equipment and, in certain cases, subcontractor materials, labor, and equipment are included in revenue and cost of revenue when management believes that the Company is acting as a principal rather than as an agent (i.e., the Company integrates the materials, labor and equipment into the deliverables promised to the customer). Customer-furnished materials are only included in revenue and cost when the contract includes construction activity and the Company has visibility into the amount the customer is paying for the materials or there is a reasonable basis for estimating the amount. The Company recognizes revenue, but not profit, on certain uninstalled materials that are not specifically produced, fabricated, or constructed for a project. Revenue on these uninstalled materials is recognized when the cost is incurred (when control is transferred). Changes to total estimated contract cost or losses, if any, are recognized in the period in which they are determined as assessed at the contract level. Pre-contract costs are expensed as incurred unless they are expected to be recovered from the client. Project mobilization costs are generally charged to project costs as incurred when they are an integrated part of the performance obligation being transferred to the client. Customer payments on engineering and construction contracts are typically due within 30 to 45 days of billing, depending on the contract. For service contracts (including maintenance contracts) in which the Company has the right to consideration from the customer in an amount that corresponds directly with the value to the customer of the Company’s performance completed to date, revenue is recognized when services are performed and contractually billable. Service contracts that include multiple performance obligations are segmented between types of services. For contracts with multiple performance obligations, the Company allocates the transaction price to each performance obligation using an estimate of the stand-alone selling price of each distinct service in the contract. Revenue recognized on service contracts that have not been billed to clients is classified as a current asset under contract assets on the Consolidated Balance Sheets. Amounts billed to clients in excess of revenue recognized on service contracts to date are classified as a current liability under contract liabilities. Customer payments on service contracts are typically due within 30 days of billing, depending on the contract. Revenues from Sale of Equipment Performance Obligations Satisfied at a point in time. We recognize revenue on agreements for non-customized equipment we sell on a standardized basis to the market at a point in time. We recognize revenue at the point in time that the customer obtains control of the good, which is generally upon shipment or when the customer has physical possession of the product depending on contract terms. We use proof of delivery for certain large equipment with more complex logistics, whereas the delivery of other equipment is estimated based on historical averages of in-transit periods (i.e., time between shipment and delivery). Generally, shipping costs are included in the price of equipment unless the customer requests a non-standard shipment. In situations where an alternative shipment arrangement has been made, the Company recognizes the shipping revenue upon customer receipt of the shipment. In situations where arrangements include customer acceptance provisions based on seller or customer-specified objective criteria, we recognize revenue when we have concluded that the customer has control of the goods and that acceptance is likely to occur. We generally do not provide for anticipated losses on point in time transactions prior to transferring control of the equipment to the customer. Our billing terms for these point in time equipment contracts vary and generally coincide with shipment to the customer; however, within certain businesses, we receive progress payments from customers for large equipment purchases, which is generally to reserve production slots with our manufacturing partners, which are recorded as contract liabilities. Due to the customized nature of the equipment, the Company does not allow for customer returns. Service Performance obligations satisfied over time. We enter into long-term product service agreements with our customers primarily within our microgrid segment. These agreements require us to provide preventative maintenance, and standby support services that include certain levels of assurance regarding system performance throughout the contract periods; these contracts will generally range from 1 to 10 years. We account for items that are integral to the maintenance of the equipment as part of our service-related performance obligation, unless the customer has a substantive right to make a separate purchasing decision (e.g., equipment upgrade). Contract modifications that extend or revise contract terms are not uncommon and generally result in our recognizing the impact of the revised terms prospectively over the remaining life of the modified contract (i.e., effectively like a new contract). Revenues are recognized for these arrangements on a straight-line basis consistent with the nature, timing and extent of our services, which primarily relate to routine maintenance and as needed product repairs. Our billing terms for these contracts vary, but we generally invoice periodically as services are provided. Contract assets represent revenue recognized in excess of amounts billed and include unbilled receivables (typically for cost reimbursable contracts) of $0 $906 $4,103 $0 $0 $63,603 $64,108 Revenues from software The Company derives its software revenue from both subscription fees from customers for access to its (i) energy software offerings and software license sales and (ii) support services. Revenues from software licenses are generally recognized upfront when the software is made available to the customer, and revenues from the related support is generally recognized ratably over the contract term. The Company’s policy is to exclude sales and other indirect taxes when measuring the transaction price of its subscription agreements. The Company’s subscription agreements generally have monthly or annual contractual terms. Revenue is recognized ratably over the related contractual term beginning on the date that the platform is made available to a customer. Access to the platform represents a series of distinct services as the Company continually provides access to, and fulfills its obligation to the end customer over the subscription term. The series of distinct services represents a single performance obligation that is satisfied over time. Revenues from design, software development and other technology-based consulting services For service contracts performed under Master Services Agreements (“MSA”) and accompanying Statement(s) of Work (“SOW”), revenue is recognized based on the performance obligation(s) outlined in the SOW which is typically hours worked or specific deliverable milestones. In the case of a milestone-based SOW, the Company recognizes revenue as each deliverable is signed off by the customer. Revenues from data center services The Company provides data services such as providing its customers with rack space, power and equipment, and cloud services such as virtual services, virtual storage, and data backup services, generally based on monthly services provided at a defined price included in the contracts. The performance obligations are the services provided to a customer for the month based on the contract. The transaction price is the price agreed with the customer for the monthly services provided and the revenues are recognized monthly based on the services rendered for the month. Revenues from digital currency mining The Company has entered into a digital asset mining pool to provide computing power to the mining pool. Providing computing power is the only performance obligation in the Company’s contracts with pool operators. When the Company successfully places a block (by being the first to solve an algorithm) and the Company receives confirmation of the consideration it will receive, at which time revenue is recognized. The transaction consideration the Company receives is noncash consideration, which the Company measures at fair value on the date received. The consideration is dependent on the number of digital assets mined on any given day. digital Fair value of the digital currency award received is determined using the spot price of the related digital currency at the time of receipt. There is currently no specific definitive guidance under GAAP or alternative accounting framework for the accounting for digital currencies recognized as revenue or held, and management has exercised significant judgment in determining the appropriate accounting treatment. In the event authoritative guidance is enacted by the FASB, the Company may be required to change its policies, which could have an effect on the Company’s consolidated financial position and results from operations. Variable Consideration The nature of the Company’s contracts gives rise to several types of variable consideration, including claims and unpriced change orders, awards and incentive fees, and liquidated damages and penalties. The Company recognizes revenue for variable consideration when it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. The Company estimates the amount of revenue to be recognized on variable consideration using the expected value (i.e., the sum of a probability-weighted amount) or the most likely amount method, whichever is expected to better predict the amount. Factors considered in determining whether revenue associated with claims (including change orders in dispute and unapproved change orders in regard to both scope and price) should be recognized include the following: (a) the contract or other evidence provides a legal basis for the claim, (b) additional costs were caused by circumstances that were unforeseen at the contract date and not the result of deficiencies in the Company’s performance, (c) claim-related costs are identifiable and considered reasonable in view of the work performed, and (d) evidence supporting the claim is objective and verifiable. If the requirements for recognizing revenue for claims or unapproved change orders are met, revenue is recorded only when the costs associated with the claims or unapproved change orders have been incurred. Back charges to suppliers or subcontractors are recognized as a reduction of cost when it is determined that recovery of such cost is probable, and the amounts can be reliably estimated. Disputed back charges are recognized when the same requirements described above for claims accounting have been satisfied. The C Practical Expedients If the Company has a right to consideration from a customer in an amount that corresponds directly with the value of the Company’s performance completed to date (a service contract in which the Company bills a fixed amount for each hour of service provided), the Company recognizes revenue in the amount to which it has a right to invoice for services performed. The Company does not adjust the contract price for the effects of a significant financing component if the Company expects, at contract inception, that the period between when the Company transfers a service to a customer and when the customer pays for that service will be one year or less. The Company has made an accounting policy election to exclude from the measurement of the transaction price all taxes assessed by governmental authorities that are collected by the Company from its customers (use taxes, value added taxes, some excise taxes). For the three months ended December 31, 2020 and 2019, the Company reported revenues of $2,257,570 $976,824 Cash and cash equivalents For purposes of the consolidated statements of cash flows, the Company considers all highly liquid investments and short-term debt instruments with original maturities of three months or less to be cash equivalents. There was $25,631,913 $3,126,202 Digital Currency Digital currencies are included in current assets in the consolidated balance sheets. Digital currencies are recorded at cost less impairment. Digital currencies held are accounted for as intangible assets with indefinite useful lives. An intangible asset with an indefinite useful life is not amortized but assessed for impairment annually, or more frequently, when events or changes in circumstances occur indicating that it is more likely than not that the indefinite-lived asset is impaired. Impairment exists when the carrying amount exceeds its fair value, which is measured using the quoted price of the digital currency at the time its fair value is being measured. In testing for impairment, the Company has the option to first perform a qualitative assessment to determine whether it is more likely than not that an impairment exists. If it is determined that it is not more likely than not that an impairment exists, a quantitative impairment test is not necessary. If the Company concludes otherwise, it is required to perform a quantitative impairment test. To the extent an impairment loss is recognized, the loss establishes the new cost basis of the asset. Subsequent reversal of impairment losses is not permitted. Digital currencies awarded to the Company through its mining activities are included within operating activities on the accompanying consolidated statements of cash flows. The sales of digital currencies are included within investing activities in the accompanying consolidated statements of cash flows and any realized gains or losses from such sales are included in other income (expense) in the consolidated statements of operations. The Company accounts for its gains or losses in accordance with the first in first out (FIFO) method of accounting. The following table presents the activities of the digital currencies for the three months ended December 31, 2020: Digital currencies at December 31, 2020: Amount Balance at September 30, 2020 $ — Additions of digital currencies 733,410 Realized gain on sale of digital currencies 49,918 Sale of digital currencies (375,887) Balance at December 31, 2020 $ 407,441 Accounts receivable Accounts receivable is comprised of uncollateralized customer obligations due under normal trade terms. The Company performs ongoing credit evaluation of its customers and management closely monitors outstanding receivables based on factors surrounding the credit risk of specific customers, historical trends, and other information. The carrying amount of accounts receivable is reviewed periodically for collectability. If management determines that collection is unlikely, an allowance that reflects management’s best estimate of the amounts that will not be collected is recorded. Accounts receivable are presented net of an allowance for doubtful accounts of $42,970 $42,970 Retention receivable is the amount withheld by a customer until a contract is completed. Retention receivables of $0 $615 Investment securities Investment securities include debt securities and equity securities. Debt securities are classified as available for sale (“AFS”) and are reported as an asset in the Consolidated Balance Sheet at their estimated fair value. As the fair values of AFS debt securities change, the changes are reported net of income tax as an element of OCI, except for other-than-temporarily-impaired securities. When AFS debt securities are sold, the unrealized gains or losses are reclassified from OCI to non-interest income. Securities classified as AFS are securities that the Company intends to hold for an indefinite period of time, but not necessarily to maturity. Any decision to sell a security classified as AFS would be based on various factors, including significant movements in interest rates, changes in the maturity mix of the Company’s assets and liabilities, liquidity needs, decline in credit quality, and regulatory capital considerations. Interest income is recognized based on the coupon rate and increased by accretion of discounts earned or decreased by the amortization of premiums paid over the contractual life of the security. For individual debt securities where the Company either intends to sell the security or more likely than not will not recover all of its amortized cost, the OTTI is recognized in earnings equal to the entire difference between the security's cost basis and its fair value at the balance sheet date. For individual debt securities for which a credit loss has been recognized in earnings, interest accruals and amortization and accretion of premiums and discounts are suspended when the credit loss is recognized. Interest received after accruals have been suspended is recognized in income on a cash basis. The Company holds investments in both publicly held and privately held equity securities. However, as described in Note 1, the Company primarily operates in the alternative energy sector and in the digital currency mining sector, and thus, it is not in the business of investing in securities. Privately held equity securities are recorded at cost and adjusted for observable transactions for same or similar investments of the issuer (referred to as the measurement alternative) or impairment. All gains and losses on privately held equity securities, realized or unrealized, are recorded through gains or losses on equity securities on the consolidated statement of operations. Publicly held equity securities are based on fair value accounting with unrealized gains or losses resulting from changes in fair value reflected as unrealized gains or losses on equity securities in our consolidated statements of operations. Concentration Risk At times throughout the year, the Company may maintain cash balances in certain bank accounts in excess of FDIC limits. As of December 31, 2020, the cash balance in excess of the FDIC limits was $25,379,232 Warranty Liability The Company establishes warranty liability reserves to provide for estimated future expenses as a result of installation and product defects, product recalls, and litigation incidental to the Company’s business. Liability estimates are determined based on management’s judgment, considering such factors as historical experience, the likely current cost of corrective action, manufacturers’ and subcontractors’ participation in sharing the cost of corrective action, consultations with third party experts such as engineers, and discussions with the Company’s general counsel and outside counsel retained to handle specific product liability cases. The Company’s manufacturers and service providers currently provide substantial warranties between ten to twenty-five years with full reimbursement to replace and install replacement parts. Warranty costs and associated liabilities were $0 $0 Stock-based compensation The Company follows the guidelines in FASB Codification Topic ASC 718-10 “Compensation-Stock Compensation,” which requires companies to measure the cost of employee and non-employee services received in exchange for an award of an equity instrument based on the grant-date fair value of the award. Stock-based compensation expense is recognized on a straight-line basis over the requisite service period. The Company may issue compensatory shares for services including, but not limited to, executive, management, accounting, operations, corporate communication, financial and administrative consulting services. Earnings (loss) per share The Company reports earnings (loss) per share in accordance with Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) 260-10 “Earnings Per Share,” which provides for calculation of “basic” and “diluted” earnings per share. Basic earnings per share includes no dilution and is computed by dividing net income or loss available to common stockholders by the weighted average common shares outstanding the period. Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of an entity. The calculation of diluted net loss per share gives effect to common stock equivalents; however, potential common shares are excluded if their effect is anti-dilutive. As of December 31, 2020, there are 1,562,092 Property and equipment Property and equipment are stated at cost. Depreciation is calculated on a straight-line basis over the estimated useful life of the asset as follows: Useful life Machinery and equipment 3 5 Mining equipment 3 years Leasehold improvements Shorter of estimated lease term or 5 Furniture and fixtures 3 5 Long-lived Assets In accordance with the Financial Accounting Standards Board ("FASB") Accounts Standard Codification (ASC) ASC 360-10, "Property, Plant and Equipment," the carrying value of intangible assets and other long-lived assets is reviewed on a regular basis for the existence of facts or circumstances that may suggest impairment. The Company recognizes impairment when the sum of the expected undiscounted future cash flow is less than the carrying amount of the asset. Impairment losses, if any, are measured as the excess of the carrying amount of the asset over its estimated fair value. For the three months ended December 31, 2020 and 2019, the Company did not record an impairment expense. Intangible Assets and Goodwill The Company accounts for business combinations under the acquisition method of accounting in accordance with ASC 805, “Business Combinations,” where the total purchase price is allocated to the tangible and identified intangible assets acquired and liabilities assumed based on their estimated fair values. The purchase price is allocated using the information currently available, and may be adjusted, up to one year from acquisition date, after obtaining more information regarding, among other things, asset valuations, liabilities assumed, and revisions to preliminary estimates. The purchase price in excess of the fair value of the tangible and identified intangible assets acquired less liabilities assumed is recognized as goodwill. The Company reviews its indefinite lived intangibles and goodwill for impairment annually or whenever events or circumstances indicate that the carrying amount of the asset exceeds its fair value and may not be recoverable. In accordance with its policies, the Company performed an assessment of indefinite lived intangibles and goodwill and determined there was no impairment for the three months ended December 31, 2020 and 2019. Software Development Costs The Company capitalizes software development costs under guidance of ASC 985-20 “Costs of Software to be Sold, Leased or Marketed” for our mPulse platform and under ASC 350-40 “Internal Use Software” for our mVSO, Canvas & Plaid products. Software development costs include payments made to independent software developers under development agreements, as well as direct costs incurred for internally developed products. Software development costs are capitalized once the technological feasibility of a product is established and such costs are determined to be recoverable. Technological feasibility of a product requires both technical design documentation and infrastructure design documentation, or the completed and tested product design and a working model. Significant management judgments and estimates are utilized in the assessment of when technological feasibility is established, and the evaluation is performed on a product-by-product basis. For products where proven technology exists, this may occur early in the development cycle. Prior to a product's release, if and when we we Commencing upon a product's release, capitalized software development costs are amortized to "Cost of revenues—software amortization" based on the ratio of current revenues to total projected revenues for the specific product, generally resulting in an amortization period of seven years for our current product offerings. In recognition of the uncertainties involved in estimating future revenue, amortization will never be less than straight-line amortization of the products remaining estimated economic life. We evaluate the future recoverability of capitalized software development costs on a quarterly basis. For products that have been released in prior periods, the primary evaluation criterion is the actual performance of the software platform to which the costs relate. For products that are scheduled to be released in future periods, recoverability is evaluated based on the expected performance of the specific products to which the costs relate. Criteria used to evaluate expected product performance include: historical performance of comparable products developed with comparable technology, market performance of comparable software, orders for the product prior to its release, pending contracts, and general market conditions. Significant management judgments and estimates are utilized in assessing the recoverability of capitalized costs. In evaluating the recoverability of capitalized costs, the assessment of expected product performance utilizes forecasted sales amounts and estimates of additional costs to be incurred. If revised forecasted or actual product sales are less than the originally forecasted amounts utilized in the initial recoverability analysis, the net realizable value may be lower than originally estimated in any given quarter, which could result in an impairment charge. Material differences may result in the amount and timing of expenses for any period if matters resolve in a manner that is inconsistent with management's expectations. If an impairment occurs, the reduced amount of the capitalized software costs that have been written down to the net realizable value at the close of each annual fiscal period will be considered the cost for subsequent accounting purposes. Fair value of financial instruments and derivative asset The carrying value of cash, accounts payable and accrued expenses, and debt (See Notes 8 and 9) approximate their fair values because of the short-term nature of these instruments. Management believes the Company is not exposed to significant interest or credit risks arising from these financial instruments. The carrying amount of the Company’s long-term debt is also stated at fair value of $531,169 Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value maximize the use of observable inputs and minimize the use of unobservable inputs. The Company utilizes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable. • Level 1 Quoted prices in active markets for identical assets or liabilities. These are typically obtained from real-time quotes for transactions in active exchange markets involving identical assets. • Level 2 Quoted prices for similar assets and liabilities in active markets; quoted prices included for identical or similar assets and liabilities that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. These are typically obtained from readily-available pricing sources for comparable instruments. • Level 3 Unobservable inputs, where there is little or no market activity for the asset or liability. These inputs reflect the reporting entity’s own beliefs about the assumptions that market participants would use in pricing the asset or liability, based on the best information available in the circumstances. The following table presents the Company’s financial instruments that are measured and recorded at fair value on the Company’s balance sheets on a recurring basis, and their level within the fair value hierarchy as of December 31, 2020 and September 30, 2020, respectively: Fair value measured at December 31, 2020 Amount Level 1 Level 2 Level 3 Derivative asset $ 1,094,775 $ — $ — $ 1,094,775 Investment in equity security 136,500 136,500 — $ — Investment debt security 500,000 — — 500,000 Total $ 1,731,275 $ 136,500 $ — $ 1,594,775 Fair value measured at September 30 |
3. ACQUISITIONS
3. ACQUISITIONS | 3 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
3. ACQUISITIONS | 3. ACQUISITIONS ATL DATA CENTERS, LLC On December 9, 2020, the Company entered into an Agreement and Plan of Merger (the “Merger”) with ATL Data Centers LLC (“ATL”) and its members. At the closing, ATL became a wholly-owned subsidiary of the Company. In exchange, the Company issued 1,618,285 of restricted common stock based on the average closing price of the Company’s common stock (as reflected on Nasdaq.com) for the five trading days including and immediately preceding the closing date of $11.988 642,309 975,976 with all such shares subject to a lock up of no less than 180 days and a leak out of no more than 10% of the average daily trading value of the prior 30 days. The consideration remitted in connection with the Merger is subject to adjustment based on post-closing adjustments to closing cash, indebtedness, and transaction expenses of ATL within 90 days of closing. The Company also assumed approximately $6.9 million 41,708 $545,916 The Company accounted for the acquisition of ATL as an acquisition of a business under ASC 805. The Company determined the fair value of the consideration given to the selling members of ATL in connection with the transaction in accordance with ASC 820 was as follows: Consideration: Fair Value 1,618,285 $ 21,183,351 Total Consideration $ 21,183,351 The total purchase price was allocated to identifiable assets deemed acquired, and liabilities assumed, based on their estimated fair values as indicated below. The business combination accounting is not yet final and the amounts assigned to the assets acquired and the liabilities assumed are provisional. Therefore, this may result in future adjustments to the provisional amounts as new information is obtained about the facts and circumstances that existed at the acquisition date. Purchase Price Allocation: Strategic contract $ 7,457,970 Goodwill $ 14,205,245 Other assets and liabilities assumed, net $ (479,864) Total $ 21,183,351 The strategic contract relates to supply of a critical input to our digital currency mining business. The other assets and liabilities assumed includes $5.475 million The following is the unaudited pro forma information assuming the acquisition of GridFabric, p2k Labs, and ATL occurred on October 1, 2019: For the Three Months Ended December 31, 2020 December 30, 2019 Net sales $ 4,343,169 $ 1,289,810 Net loss $ (6,458,903 ) $ (1,890,994) Loss per common share - basic and diluted $ (0.27 ) $ (0.29) Weighted average common shares outstanding - basic and diluted 23,765,277 6,521,486 The unaudited pro forma consolidated financial results have been prepared for illustrative purposes only and do not purport to be indicative of the results of operations that actually would have resulted had the acquisition occurred on the first day of the earliest period presented, or of future results of the consolidated entities. The unaudited pro forma consolidated financial information does not reflect any operating efficiencies and cost savings that may be realized from the integration of the acquisition. All transitions that would be considered inter-company transactions for proforma purposes have been eliminated. P2K LABS, INC On January 31, 2020, the Company, entered into an Agreement with p2k, and its sole stockholder, Amer Tadayon, whereby the Company purchased all of the issued and outstanding shares of p2k in exchange for an aggregate purchase price of cash and equity of $1,688,935 As a result of the transaction, p2k is now a wholly-owned subsidiary of the Company. Pursuant to the terms of the Agreement, the purchase price was as follows: a) $1,039,500 b) 31,183 $145,000 Seller may sell an amount of Shares equal to ten percent (10%) of the daily dollar trading volume of the Company’s common stock on its principal market for the prior 30 days c) $115,500 d) 64,516 $300,000 The Holdback Shares will also be subject to the Leak-Out Terms once they are released from escrow 12 months from closing. The Shares and Holdback Shares were deemed to have a fair market value of $4.65 e) 26,950 $88,935 The Company accounted for the acquisition of p2k as an acquisition of a business under ASC 805. The Company determined the fair value of the consideration given to the Seller in connection with the Transaction in accordance with ASC 820 was as follows: Consideration: Fair Value Cash $ 1,155,000 95,699 $ 445,000 26,950 $ 88,935 Total Consideration $ 1,688,935 The total purchase price was allocated to identifiable assets deemed acquired, and liabilities assumed, of the Company’s acquisition of p2k, based on their estimated fair values as indicated below. Purchase Price Allocation: Customer list $ 730,000 Design and other assets $ 123,000 Goodwill $ 957,388 Other assets and liabilities assumed, net $ ( 121,453 Total $ 1,688,935 GRIDFABRIC, LLC On August 31, 2020, the Company entered into a Membership Interest Purchase Agreement (the “Agreement”) with GridFabric, LLC, (“GridFabric”), and its sole member, Dupont Hale Holdings, LLC (“Seller”), whereby the Company purchased all of the issued and outstanding membership units of GridFabric from the Seller (the “Transaction”) in exchange for an aggregate purchase price of cash and stock of up to $1,400,000 Pursuant to the terms of the Agreement, the Purchase Price was as follows: a) $ 360,000 in cash was paid to the Seller at closing; b) $400,000 in cash was delivered to an independent third-party escrow where such cash is subject to offset for adjustments to the Purchase Price and indemnification purposes for a period of 12 months; c) 26,427 restricted shares of the Company’s common stock, valued at $250,000 , were issued to the Seller (the “Shares”). The Shares are subject to certain leak-out provisions whereby the Seller may sell an amount of Shares equal to no more than ten percent (10%) of the daily dollar trading volume of the Company’s common stock on its principal market for the prior 30 days (the “Leak-Out Terms”); and d) additional shares of the Company’s common stock, valued at up to $750,000 , will be issuable to Seller if GridFabric achieves certain revenue and product release milestones related to the future performance of GridFabric (the “Earn-out Shares”). The Earn-Out Shares are also subject to the Leak-Out Terms. The Shares were issued at a fair market value of $9.46 per share The Agreement contains standard representations, warranties, covenants, indemnification and other terms customary in similar transactions. In connection with the transaction, the Company also entered into employment relationships and non-compete agreements with GridFabric’s key employees for a period of 36 months and plans to issue future equity compensation to said employees, subject to approval of the Company’s board of directors. The Company accounted for the acquisition of GridFabric as an acquisition of a business under ASC 805. The Company determined the fair value of the consideration given to the Seller in connection with the Transaction in accordance with ASC 820 was as follows: Consideration: Fair Value Cash $ 400,000 26,427 $ 250,000 Contingent consideration - common stock issuable upon achievement of milestone(s) $ 750,000 Total Consideration $ 1,400,000 The total purchase price of the Company’s acquisition of GridFabric was allocated to identifiable assets deemed acquired, and liabilities assumed, based on their estimated fair values as indicated below. Purchase Price Allocation: Software $ 1,120,000 Customer list $ 60,000 Non-compete $ 190,000 Goodwill $ 26,395 Net Assets $ 3,605 Total $ 1,400,000 |
4. INVESTMENT IN INTERNATIONAL
4. INVESTMENT IN INTERNATIONAL LAND ALLIANCE | 3 Months Ended |
Dec. 31, 2020 | |
Schedule of Investments [Abstract] | |
4. INVESTMENT IN INTERNATIONAL LAND ALLIANCE | 4. INVESTMENT IN INTERNATIONAL LAND ALLIANCE International Land Alliance, Inc. On November 5, 2019, the Company entered into a binding Memorandum of Understanding (the “MOU”) with International Land Alliance, Inc., a Wyoming corporation (“ILAL”), in order to lay a foundational framework where the Company will deploy its energy solutions products and services to ILAL, its energy projects, and its customers. In connection with the MOU, and in order to support the power and energy needs of ILAL’s development and construction of certain projects, the Company entered into a Securities Purchase Agreement, dated as of November 6, 2019, with ILAL (the “ILAL SPA”). Pursuant to the terms of the ILAL SPA, ILAL sold, and the Company purchased 1,000 $500,000 350,000 The Preferred Stock will accrue cumulative in-kind accruals at a rate of 12% per annum and may increase upon the occurrence of certain events. The Preferred Stock is now convertible into common stock at a variable rate as calculated under the agreement terms. The commitment shares are recorded at fair value as of December 31, 2020 of $136,500 The Preferred Stock is recorded as an AFS debt security and is reported at its estimated fair value as of December 31, 2020. The Company identified a derivative instrument in accordance with ASC Topic No. 815 due to the variable conversion feature. Topic No. 815 requires the Company to account for the conversion feature on its balance sheet at fair value and account for changes in fair value as a derivative gain or loss. The Black-Scholes model utilized the following inputs to value the derivative asset at the date in which the derivative asset was determined through December 31, 2020. Fair value assumptions: December 31, 2020 Risk free interest rate 0.09% Expected term (months) — Expected volatility 147.25% Expected dividends 0% |
5. CAPITALIZED SOFTWARE
5. CAPITALIZED SOFTWARE | 3 Months Ended |
Dec. 31, 2020 | |
Research and Development [Abstract] | |
5. CAPITALIZED SOFTWARE | 5. CAPITALIZED SOFTWARE Capitalized software consists of the following as of December 31, 2020 and September 30, 2020: December 31, 2020 September 30, 2020 mVSO software $ 437,135 $ 437,135 mPulse software 741,846 741,846 Less: accumulated amortization (242,064 ) (202,778) Capitalized Software, net $ 936,917 $ 976,203 Capitalized software amortization recorded as cost of revenues and product development expense for the three months ended December 31, 2020 and 2019 was $39,286 $39,286 |
6. INTANGIBLE ASSETS
6. INTANGIBLE ASSETS | 3 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
6. INTANGIBLE ASSETS | 6. INTANGIBLE ASSETS The Company amortizes intangible assets with finite lives over their estimated useful lives, which range between two and twenty years as follows: Useful life Patents 15 20 Websites 3 Customer list and non-compete agreement 3 4 Design assets 2 Trademarks 14 Engineering trade secrets 7 years Strategic contract 5 Software 2 3 Intangible assets consist of the following as of December 31, 2020 and September 30, 2020: December 31, 2020 September 30, 2020 Patents $ 74,112 $ 74,112 Websites 8,115 8,115 Customer list and non-compete agreement 6,702,024 6,702,024 Design assets 123,000 123,000 Trademarks 5,928 5,928 Trade secrets 4,370,269 4,370,269 Software 1,120,000 1,120,000 Strategic Contract 7,457,970 — Intangible assets: 19,861,418 12,403,448 Less: accumulated amortization (6,220,997 ) (5,353,792) Intangible assets, net $ 13,640,421 $ 7,049,656 Amortization expense for the three months ended December 31, 2020 and 2019 was $867,205 $12,683 $613,115 The Company expects to record amortization expense of intangible assets over the next 5 years and thereafter as follows: 2021 $ 3,224,597 2022 4,003,379 2023 2,486,842 2024 2,100,124 2025 1,491,800 Thereafter 333,679 Total $ 13,640,421 |
7. FIXED ASSETS
7. FIXED ASSETS | 3 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
7. FIXED ASSETS | 7. FIXED ASSETS Fixed assets consist of the following as of December 31, 2020 and September 30, 2020: December 31, 2020 September 30, 2020 Machinery and equipment $ 1,288,911 $ 193,042 Mining equipment 5,475,000 — Leasehold improvements 17,965 17,965 Furniture and fixtures 101,628 82,547 Total 6,883,504 293,554 Less: accumulated depreciation (399,367 ) (175,560) Fixed assets, net $ 6,484,137 $ 117,994 Depreciation expense for the three months ended December 31, 2020 and 2019 was $223,907 $13,662 |
8. LOANS
8. LOANS | 3 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
8. LOANS | 8. LOANS Long term Long-term loans payable consists of the following: December 31, 2020 September 30, 2020 Promissory notes $ 531,169 $ 531,169 Total $ 531,169 $ 531,169 Promissory Notes On May 7, 2020, the Company applied for a loan from Celtic Bank Corporation, as lender, pursuant to the Paycheck Protection Program of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) as administered by the U.S. Small Business Administration (the "SBA"). On May 15, 2020, the loan was approved and the Company received the proceeds from the loan in the amount of $531,169 May 7, 2022 1.0% The PPP Note provides for customary events of default, including, among others, those relating to failure to make payments thereunder. The Company may prepay the principal of the PPP Loan at any time without incurring any prepayment penalties. The PPP Loan is non-recourse against any individual shareholder, except to the extent that such party uses the loan proceeds for an unauthorized purpose. All or a portion of the PPP Loan may be forgiven by the SBA and lender upon application by the Company beginning 8 weeks after loan approval and upon documentation of expenditures in accordance with the SBA requirements. Under the CARES Act, loan forgiveness is available for the sum of documented payroll costs, covered rent payments, and covered utilities during the eight-week period beginning on the date of loan approval. For purposes of the CARES Act, payroll costs exclude compensation of an individual employee in excess of $100,000, prorated annually. Not more than 25% of the forgiven amount may be for non-payroll costs. Forgiveness is reduced if full-time headcount declines, or if salaries and wages for employees with salaries of $100,000 or less annually are reduced by more than 25%. Paycheck Protection Program Flexibility Act of 2020 (the “PPP Flexibility Act”), enacted on June 5, 2020, amended the Paycheck Protection Program, among others, as follows: (i) extended the covered period from 8 weeks to 24 weeks from the date the PPP Loan is originated, during which PPP funds needed to be expended in order to be forgiven. A borrower may submit a loan forgiveness application any time on or before the maturity date of the loan – including before the end of the covered period – if the borrower has used all of the loan proceeds for which the borrower is requesting forgiveness, (ii) at least 60% of PPP funds must be spent on payroll costs, with the remaining 40% available to spend on other eligible expenses, (iii) payments are deferred until the date on which the amount of forgiveness determined is remitted to the lender. If a borrower fails to seek forgiveness within 10 months after the last day of its covered period, then payments will begin on the date that is 10 months after the last day of the covered period. In addition, the PPP Flexibility Act modified the CARES Act by increasing the maturity date for loans made after the effective date from two years, to a minimum maturity of five years from the date on which the borrower applies for loan forgiveness. Existing PPP loans made before the new legislation retain their original two-year term, but may be renegotiated between a lender and a borrower to match the 5-year term permitted under the PPP Flexibility Act. Company intends to apply for loan forgiveness within the required timeframe. No assurance is provided that the Company will obtain forgiveness of the PPP Loan in whole or in part. The Company recorded interest expense of $3,987 $0 |
9. CONVERTIBLE NOTES PAYABLE
9. CONVERTIBLE NOTES PAYABLE | 3 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
9. CONVERTIBLE NOTES PAYABLE | 9. CONVERTIBLE NOTES PAYABLE Short-Term convertible notes Securities Purchase Agreement – December 31, 2018 On December 31, 2018, the Company entered into a Securities Purchase Agreement (the “SPA”) with an otherwise unaffiliated third-party institutional investor (the “Investor”), pursuant to which the Company issued to the Investor a Senior Secured Redeemable Convertible Debenture (the “Debenture”) in the aggregate face value of $5,250,000 two years 7.5% The transactions described above closed on December 31, 2018. In connection with the issuance of the Debenture and pursuant to the terms of the SPA, the Company issued to the Investor 10,000 308,333 three years $20.00 125,000 $25.00 100,000 $50.00 50,000 $75.00 33,333 $4,995,000 $5,000 Pursuant to the terms of the SPA, the Investor agreed to tender to the Company the sum of $5,000,000 Prior to the maturity date, provided that no trigger event has occurred, the Company will have the right at any time upon 30 trading days’ prior written notice, in its sole and absolute discretion, to redeem all or any portion of the Debenture then outstanding by paying to the Investor an amount equal to 140% of the of the portion of the Debenture being redeemed The Investor may convert the Debenture into shares of the Company’s common stock at a conversion price equal to 95% of the mathematical average of the 5 lowest individual daily volume weighted average prices of the common stock, less $0.50 per share, during the period beginning on the issuance date and ending on the maturity date subject to certain floor price restrictions. In the event certain equity conditions exist, the Company may require that the Investor convert the Debenture. In no event shall the Debenture be allowed to affect a conversion if such conversion, along with all other shares of Company common stock beneficially owned by the Investor and its affiliates would exceed 4.99% of the outstanding shares of the common stock of the Company. While the Debenture is outstanding, if triggering events occur, the conversion rate may be decreased by 10% and the interest rate increased by 10% for each triggering event which may result in the issuance of additional shares. On March 4, March 13, and May 1, 2020 the Company entered into amendments (the “Amendments”) with the Investor. The Amendments amended the SPA and Debenture, as follows: 1) A Floor Price of $1.50 2) Lowered the closing price of the Common Stock which may trigger an event of default from $5.00 $1.75 3) Deleted the requirement that the Investor convert the Debenture at maturity and; 4) Allowed the Company, to not reserve or issue to the Investor more shares of Common Stock than were reserved for the Investor prior to the amendment date until September 29, 2020. As of September 30, 2020, the Debenture was fully converted into shares of the Company’s common stock. The aggregate debt discount has been accreted and charged to interest expenses as a financing expense in the amount of $0 $157,379 Securities Purchase Agreement – April 17, 2019 On April 17, 2019, the Company entered into a Securities Purchase Agreement (the “Agreement”) with an otherwise unaffiliated third-party institutional investor (the “Investor”), pursuant to which the Company agreed to issue to the Investor a $10,750,000 7.5% 215 7.5% 230,000 125,000 $20,000,000 Pursuant to the first closing of the Agreement, which occurred on April 18, 2019, the Investor agreed to tender to the Company the sum of $10,000,000 The Note has a maturity date of two years 7.5% Prior to the maturity date, provided that no trigger event has occurred, the Company will have the right at any time upon 30 trading days’ prior written notice, in its sole and absolute discretion, to redeem all or any portion of the Note then outstanding by paying to the Investor an amount equal to 145% of the of the portion of the Note being redeemed. The Investor may convert the Note into shares of the Company’s common stock at a conversion price equal to 90% of the mathematical average of the 5 lowest individual daily volume weighted average prices of the common stock, less $0.75 per share, during the period beginning on the issuance date and ending on the maturity date subject to certain floor price restrictions. In the event certain equity conditions exist, the Company may require that the Investor convert the Note. In no event shall the Note be allowed to effect a conversion if such conversion, along with all other shares of Company common stock beneficially owned by the Investor and its affiliates would exceed 4.99% of the outstanding shares of the common stock of the Company. While the Note is outstanding if triggering events occur the conversion rate may be decreased by 10% and the interest rate increased by 10% for each triggering event which may result in the issuance of additional shares. On March 4, March 13, and May 1, 2020 the Company entered into amendments (the “Amendments”) with the Investor. The Amendments amended the Agreement and Note, as follows: 1) A Floor Price of $1.50 2) Lowered the closing price of the Common Stock which may trigger an event of default from $5.00 $1.75 3) Deleted the requirement that the Investor convert the Note at maturity; 4) Allowed the Company, to not reserve or issue to the Investor more shares of Common Stock than were reserved for the Investor prior to the amendment date until September 29, 2020; and 5) The Company and the Investor also agreed to remove the Second Closing and Company Option to sell an aggregate of an additional $10,000,000 in securities under the Note. As a result of these changes, the Company was authorized to terminate any and all documentation related to the 100,000 shares of Series B Preferred Stock that the Company's Board of Directors had previously voted to designate back on April 16, 2019. As of September 30, 2020, the Note was fully converted into shares of the Company’s common stock. The aggregate debt discount has been accreted and charged to interest expenses as a financing expense in the amount of $0 $1,354,795 |
10. LEASES
10. LEASES | 3 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
10. LEASES | 10. LEASES Effective October 1, 2019, the Company accounts for its leases under ASC 842, which requires lessees to recognize lease assets and liabilities arising from operating leases on the balance sheet. The Company adopted the new lease guidance using the modified retrospective approach and elected the transition option issued under ASU 2018-11, Leases (Topic 842) Targeted Improvements Leases The Company has operating leases under which it leases its branch offices, corporate headquarters and data center, one of which is with a related party. As of December 31, 2020, the Company's operating lease right of use asset and operating lease liability totaled $865,441 $865,441 10% The Company's operating leases have remaining lease terms between one year two years 1.39 10% The following is a schedule of the Company's operating lease liabilities by contractual maturity as of December 31, 2020: Fiscal year ending September 30, 2021 506,880 Fiscal year ending September 30, 2022 420,904 Total Lease Payments 930,545 Less: imputed interest ( 62,343 Total present value of lease liabilities $ 865,441 Total operating lease costs of $117,223 $21,318 The Company has financing leases in relation to the equipment used at its data center. The following is a schedule of the Company’s financing lease liabilities by contractual maturity as of December 31, 2020: Fiscal year ending September 30, 2021 303,988 Fiscal year ending September 30, 2022 405,317 Fiscal year ending September 30, 2023 312,781 Fiscal year ending September 30, 2024 127,784 Total Lease Payments 1,149,870 Less: imputed interest ( 158,486 Total present value of lease liabilities $ 991,384 These financing leases have a weighted average lease term of 3.02 8.6% |
11. RELATED PARTY TRANSACTIONS
11. RELATED PARTY TRANSACTIONS | 3 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
11. RELATED PARTY TRANSACTIONS | 11. RELATED PARTY TRANSACTIONS Zachary Bradford – Chief Executive Officer and Director During the three months ended December 31, 2020, the Company paid Blue Chip Accounting, LLC (“Blue Chip”) $30,000 50% $4,575 Matthew Schultz - Chairman of the Board The Company entered into an agreement on November 15, 2019 with an organization to provide general investor relations and consulting services that Mr. Schultz is affiliated with. The Company paid the organization $27,000 $85,150 |
12. STOCKHOLDERS EQUITY
12. STOCKHOLDERS EQUITY | 3 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
12. STOCKHOLDERS EQUITY | 12. STOCKHOLDERS EQUITY Overview The Company’s authorized capital stock consists of 35,000,000 10,000,000 $0.001 24,070,531 1,750,000 On December 5, 2019, the Company’s Board of Directors approved a reverse stock split of the Company’s common stock, par value $0.001 1:10 Amendment to Articles of Incorporation On October 4, 2019, pursuant to Article IV of our Articles of Incorporation, our Board of Directors voted to increase the number of shares of preferred stock designated as Series A Preferred Stock from one million ( 1,000,000 2,000,000 $0.001 Under the Certificate of Designation, holders of Series A Preferred Stock will be entitled to quarterly dividends on 2% of our earnings before interest, taxes and amortization. The dividends are payable in cash or common stock. The holders will also have a liquidation preference on the state value of $0.02 per share plus any accumulated but unpaid dividends. The holders are further entitled to have us redeem their Series A Preferred Stock for three shares of common stock in the event of a change of control and they are entitled to vote together with the holders of our common stock on all matters submitted to shareholders at a rate of forty-five (45) votes for each share held. The rights of the holders of Series A Preferred Stock are defined in the relevant Amendment to the Certificate of Designation filed with the Nevada Secretary of State on October 9, 2019. On October 2, 2020, the Company filed a Certificate of Amendment to its Articles of Incorporation with the Nevada Secretary of State to increase its authorized shares of common stock to 35,000,000 On October 7, 2020, the Company executed that certain first amendment to 2017 Equity Incentive Plan to increase its option pool from 300,000 1,500,000 Certificate of Preferred Stock Designation On April 16, 2019, pursuant to Article IV of our Articles of Incorporation, the Company’s Board of Directors voted to designate a class of preferred stock entitled Series B Preferred Stock, consisting of up to one hundred thousand ( 100,000 $0.001 Common Stock issuances during the three months ended December 31, 2020 The Company issued 4,444,445 $9.00 $37.05 The Company issued 236,000 $1.9 222,249 $546 thousand The Company issued 1,618,285 The Company issued 43,188 $561 thousand The Company issued 115,385 Common Stock issuances during the three months ended December 31, 2019 The Company issued 187,100 The Company issued 2,000 The Company issued 793 Series A Preferred Stock issuances during the three months ended December 31, 2019 On October 4, 2019, the Company authorized the issuance of a total of seven hundred and fifty thousand ( 750,000 A fair value of $0.02 $15,000 |
13. STOCK WARRANTS
13. STOCK WARRANTS | 3 Months Ended |
Dec. 31, 2020 | |
Stock Warrants | |
13. STOCK WARRANTS | 13. STOCK WARRANTS The following is a summary of stock warrant activity during the three months ended December 31, 2020. Number of Warrant Shares Weighted Average Exercise Price Balance, September 30, 2020 1,299,065 $ 21.78 Warrants granted — — Warrants expired — — Warrants canceled — — Warrants exercised 107,296 1.77 Balance, December 31, 2020 1,191,769 $ 23.63 During the three months ended December 31, 2020, a total of 31,096 $3.63 $8.00 On December 31, 2020, a total of 73,906 76,200 $0.83 As of December 31, 2020, the outstanding warrants have a weighted average remaining term of was 1.50 $11,130,019 As of December 31, 2020, there are warrants exercisable to purchase 1,191,769 18,571 unvested warrants outstanding that cannot be exercised until vesting conditions are met. 993,699 2,500 $8.00 449,865 $15.00 125,000 $20.00 103,000 $25.00 200,000 $35.00 10,000 $40.00 60,000 $50.00 38,333 $75.00 5,000 $100.00 198,070 |
14. STOCK OPTIONS
14. STOCK OPTIONS | 3 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
14. STOCK OPTIONS | 14. STOCK OPTIONS The Company sponsors a stock-based incentive compensation plan known as the 2017 Incentive Plan (the “Plan”), which was established by the Board of Directors of the Company on June 19, 2017. On October 7, 2020, the Company executed a first amendment to thePlan to increase its share pool from 300,000 1,500,000 553,190 The Plan allows the Company to grant incentive stock options, non-qualified stock options, stock appreciation right, or restricted stock. The incentive stock options are exercisable for up to ten years, at an option price per share not less than the fair market value on the date the option is granted. The incentive stock options are limited to persons who who The following is a summary of stock option activity during the three months ended December 31, 2020. Number of Option Shares Weighted Average Exercise Price Balance, September 30, 2020 277,948 $ 6.34 Options granted 291,500 8.68 Options expired 11,008 7.93 Options cancelled — — Options exercised 10,383 — Balance, December 31, 2020 548,057 $ 7.66 As of December 31, 2020, there are options exercisable to purchase 388,895 2.60 $11,800,257 Option activity for the three months ended December 31, 2020 During the three months ended December 31, 2020, the Company issued 291,500 $8.07 $12.48 $385,883 $953,126 The Black-Scholes model utilized the following inputs to value the options granted during the three months ended December 31, 2020: Fair value assumptions – Options: December 31, 2020 Risk free interest rate 0.18 0.22 Expected term (years) 3 Expected volatility 167% 172% Expected dividends 0 As of December 31, 2020, the Company expects to recognize $1,040,030 of stock-based compensation for the non-vested outstanding options over a weighted-average period of 1.01 Option activity for the three months ended December 31, 2019 During the three months ended December 31, 2019, the Company issued 136,697 $4.50 $8.50 $478,022 The Black-Scholes model utilized the following inputs to value the options granted during the three months ended December 31, 2019: Fair value assumptions – Options: December 31, 2019 Risk free interest rate 1.52 1.73 Expected term (years) 3 5 Expected volatility 124% 144% Expected dividends 0 |
15. COMMITMENTS AND CONTINGENCI
15. COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
15. COMMITMENTS AND CONTINGENCIES | 15. COMMITMENTS AND CONTINGENCIES Office leases Utah Corporate Office On November 22, 2019, the Company entered into a lease to relocate the corporate office to 1185 South 1800 West, Suite 3, Woods Cross, UT 84047. The agreement calls for the Company to make payments of $2,300 San Diego Office On May 15, 2018, the Company executed a 37 month $4,057 3% Las Vegas Offices On January 2, 2020, the Company entered into a sublease agreement with Blue Chip for office space at 8475 S. Eastern Ave., Suite 200, Las Vegas, NV 89123. The agreement calls for the Company to make monthly payments of $1,575 The Company assumed p2k’s lease agreement entered into on October 17, 2017 at 7955 W. Badura Ave., Suite 1040, Las Vegas, NV 89113. The agreement calls for $1,801 Atlanta Offices The Company assumed ATL’s lease agreement entered into on June 6, 2020 at 2380 Godby Road, Atlanta GA 30349. The agreement calls for $52,958 Contractual contingencies On April 6, 2020, the Company entered into a joint venture agreement with a third party to procure, distribute, and supply Personal Protective Equipment (PPE) for hospitals and frontline medical personnel. The agreement expired on December 31, 2020. Contingent consideration On August 31, 2020, the Company acquired GridFabric. Pursuant to the terms of the purchase agreement, additional shares of the Company’s common stock valued at up to $750,000 Legal contingencies From time to time we may be subject to litigation. Risks associated with legal liability are difficult to assess and quantify, and their existence and magnitude can remain unknown for significant periods of time. We have acquired liability insurance to reduce such risk exposure to the Company. Despite the measures taken, such policies may not cover future litigation, or the damages claimed may exceed our coverage which could result in continent liabilities. For a description of our material pending legal proceedings, please see Part II, Item I of this Quarterly Report on Form 10Q. |
16. MAJOR CUSTOMERS AND VENDORS
16. MAJOR CUSTOMERS AND VENDORS | 3 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
16. MAJOR CUSTOMERS AND VENDORS | 16. MAJOR CUSTOMERS AND VENDORS For the three months ended December 31, 2020 and 2019, the Company had the following customers that represented more than 10% of our sales. December 31, 2020 December 31, 2019 Customer A 37.7 % 91.2% Customer B 10.3 % — For the three months ended December 31, 2020 and 2019, the Company had the following suppliers that represented more than 10% of our direct material costs. Internally developed product costs and labor for services rendered are excluded from the calculation. December 31, 2020 December 31, 2019 Vendor A 57.8 % 93.0% Vendor B 16.3 % — |
17. SEGMENT REPORTING
17. SEGMENT REPORTING | 3 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
17. SEGMENT REPORTING | 17. SEGMENT REPORTING We disclose segment information that is consistent with the way in which management operates and views the business. Our operating structure contains the following reportable segments: Energy Segment Digital Agency Segment provides design, software development, and other technology-based consulting services. Digital Currency Mining Segment ATL Data Centers, LLC, this segment mines digital assets, namely Bitcoin. SEGMENT REPORTING - Segmnent Reporting Assets December 31, 2020 Energy Digital Agency Digital Currency Mining Inter-segment Consolidated Revenues $ 1,224,622 $ 381,326 $ 733,410 $ (81,788 ) $ 2,257,570 Cost of revenues 1,074,495 89,349 169,046 — 1,332,890 Gross profit 150,127 291,976 564,364 (81,788 ) 924,680 Operating expenses 6,779,393 287,562 109,611 (81,788 ) 7,094,778 — — — Income/(loss) from operations (6,629,266 ) 4,415 454,753 — (6,170,098) Capital expenditures 15,175 3,907 — — 19,082 Depreciation and amortization $ 717,677 $ 76,408 $ 284,344 — $ 1,078,429 December 31, 2020 Energy Digital Agency Digital Currency Mining Consolidated Accounts Receivable $ 1,292,571 $ 245,780 $ 86,117 $ 1,624,648 Goodwill $ 4,926,254 $ 977,388 $ 14,205,245 $ 20,108,887 Total Assets $ 43,917,930 $ 2,295,658 $ 31,959,148 $ 78,172,736 |
18. SUBSEQUENT EVENTS
18. SUBSEQUENT EVENTS | 3 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
18. SUBSEQUENT EVENTS | 18. SUBSEQUENT EVENTS On January 7, 2021, the Company issued 26,000 $4.65 $10.00 $150,262 On January 8, 2021, the Company issued 10,000 $15.00 $150,000 On January 11, 2021, the Company issued 125,000 $20.00 $2,500,000 On January 15, 2021, the Company issued 300 $3.36 $1,008 On January 31, 2021, the Company issued 423 $24.40 $10,321 On February 9, 2021, the Company issued 268 300 $3.36 |
2. SUMMARY OF SIGNIFICANT POL_2
2. SUMMARY OF SIGNIFICANT POLICIES (Policies) | 3 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Liquidity | Basis of Presentation and Liquidity The accompanying unaudited interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission, and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s most recent annual report on Form 10-K for the year ended September 30, 2020, filed with the SEC on December 17, 2020 (“Form 10-K”). In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim period presented in this quarterly report on Form 10-Q have been reflected herein. The results of operations for the interim period are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal period, as reported in the Form 10-K, have been omitted. The Company has incurred losses for the past several years while it develops its infrastructure and its software platforms. As shown in the accompanying unaudited consolidated financial statements, the Company incurred net losses of $7,167,530 minimum we $28,711,558 |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of CleanSpark, Inc., and its wholly owned operating subsidiaries, CleanSpark, LLC, CleanSpark, II, LLC, CleanSpark Critical Power Systems Inc., p2kLabs, Inc, GridFabric, LLC, and ATL Data Centers LLC. All material intercompany transactions have been eliminated upon consolidation of these entities. |
Use of estimates | Use of estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include estimates used to review the Company’s goodwill impairment, intangible assets acquired, impairments and estimations of long-lived assets, revenue recognition on percentage of completion type contracts, allowances for uncollectible accounts, and the valuations of non-cash capital stock issuances. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable in the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions including, but not limited to, the ultimate impact that COVID-19 may have on the Company’s operations. |
Revenue Recognition | Revenue Recognition We did not have a cumulative impact as of October 1, 2019 due to the adoption of Topic 606. Our accounting policy on revenue recognition by type of revenue is provided below. Engineering, Service & Installation or Construction Contracts The Company recognizes engineering and construction contract revenue over time, as performance obligations are satisfied, due to the continuous transfer of control to the customer. Engineering and construction contracts are generally accounted for as a single unit of account (a single performance obligation) and are not segmented between types of services. The Company recognizes revenue based primarily on contract cost incurred to date compared to total estimated contract cost (an input method). The input method is the most faithful depiction of the Company’s performance because it directly measures the value of the services transferred to the customer. Customer-furnished materials, labor, and equipment and, in certain cases, subcontractor materials, labor, and equipment are included in revenue and cost of revenue when management believes that the Company is acting as a principal rather than as an agent (i.e., the Company integrates the materials, labor and equipment into the deliverables promised to the customer). Customer-furnished materials are only included in revenue and cost when the contract includes construction activity and the Company has visibility into the amount the customer is paying for the materials or there is a reasonable basis for estimating the amount. The Company recognizes revenue, but not profit, on certain uninstalled materials that are not specifically produced, fabricated, or constructed for a project. Revenue on these uninstalled materials is recognized when the cost is incurred (when control is transferred). Changes to total estimated contract cost or losses, if any, are recognized in the period in which they are determined as assessed at the contract level. Pre-contract costs are expensed as incurred unless they are expected to be recovered from the client. Project mobilization costs are generally charged to project costs as incurred when they are an integrated part of the performance obligation being transferred to the client. Customer payments on engineering and construction contracts are typically due within 30 to 45 days of billing, depending on the contract. For service contracts (including maintenance contracts) in which the Company has the right to consideration from the customer in an amount that corresponds directly with the value to the customer of the Company’s performance completed to date, revenue is recognized when services are performed and contractually billable. Service contracts that include multiple performance obligations are segmented between types of services. For contracts with multiple performance obligations, the Company allocates the transaction price to each performance obligation using an estimate of the stand-alone selling price of each distinct service in the contract. Revenue recognized on service contracts that have not been billed to clients is classified as a current asset under contract assets on the Consolidated Balance Sheets. Amounts billed to clients in excess of revenue recognized on service contracts to date are classified as a current liability under contract liabilities. Customer payments on service contracts are typically due within 30 days of billing, depending on the contract. Revenues from Sale of Equipment Performance Obligations Satisfied at a point in time. We recognize revenue on agreements for non-customized equipment we sell on a standardized basis to the market at a point in time. We recognize revenue at the point in time that the customer obtains control of the good, which is generally upon shipment or when the customer has physical possession of the product depending on contract terms. We use proof of delivery for certain large equipment with more complex logistics, whereas the delivery of other equipment is estimated based on historical averages of in-transit periods (i.e., time between shipment and delivery). Generally, shipping costs are included in the price of equipment unless the customer requests a non-standard shipment. In situations where an alternative shipment arrangement has been made, the Company recognizes the shipping revenue upon customer receipt of the shipment. In situations where arrangements include customer acceptance provisions based on seller or customer-specified objective criteria, we recognize revenue when we have concluded that the customer has control of the goods and that acceptance is likely to occur. We generally do not provide for anticipated losses on point in time transactions prior to transferring control of the equipment to the customer. Our billing terms for these point in time equipment contracts vary and generally coincide with shipment to the customer; however, within certain businesses, we receive progress payments from customers for large equipment purchases, which is generally to reserve production slots with our manufacturing partners, which are recorded as contract liabilities. Due to the customized nature of the equipment, the Company does not allow for customer returns. Service Performance obligations satisfied over time. We enter into long-term product service agreements with our customers primarily within our microgrid segment. These agreements require us to provide preventative maintenance, and standby support services that include certain levels of assurance regarding system performance throughout the contract periods; these contracts will generally range from 1 to 10 years. We account for items that are integral to the maintenance of the equipment as part of our service-related performance obligation, unless the customer has a substantive right to make a separate purchasing decision (e.g., equipment upgrade). Contract modifications that extend or revise contract terms are not uncommon and generally result in our recognizing the impact of the revised terms prospectively over the remaining life of the modified contract (i.e., effectively like a new contract). Revenues are recognized for these arrangements on a straight-line basis consistent with the nature, timing and extent of our services, which primarily relate to routine maintenance and as needed product repairs. Our billing terms for these contracts vary, but we generally invoice periodically as services are provided. Contract assets represent revenue recognized in excess of amounts billed and include unbilled receivables (typically for cost reimbursable contracts) of $0 $906 $4,103 $0 $0 $63,603 $64,108 Revenues from software The Company derives its software revenue from both subscription fees from customers for access to its (i) energy software offerings and software license sales and (ii) support services. Revenues from software licenses are generally recognized upfront when the software is made available to the customer, and revenues from the related support is generally recognized ratably over the contract term. The Company’s policy is to exclude sales and other indirect taxes when measuring the transaction price of its subscription agreements. The Company’s subscription agreements generally have monthly or annual contractual terms. Revenue is recognized ratably over the related contractual term beginning on the date that the platform is made available to a customer. Access to the platform represents a series of distinct services as the Company continually provides access to, and fulfills its obligation to the end customer over the subscription term. The series of distinct services represents a single performance obligation that is satisfied over time. Revenues from design, software development and other technology-based consulting services For service contracts performed under Master Services Agreements (“MSA”) and accompanying Statement(s) of Work (“SOW”), revenue is recognized based on the performance obligation(s) outlined in the SOW which is typically hours worked or specific deliverable milestones. In the case of a milestone-based SOW, the Company recognizes revenue as each deliverable is signed off by the customer. Revenues from data center services The Company provides data services such as providing its customers with rack space, power and equipment, and cloud services such as virtual services, virtual storage, and data backup services, generally based on monthly services provided at a defined price included in the contracts. The performance obligations are the services provided to a customer for the month based on the contract. The transaction price is the price agreed with the customer for the monthly services provided and the revenues are recognized monthly based on the services rendered for the month. Revenues from digital currency mining The Company has entered into a digital asset mining pool to provide computing power to the mining pool. Providing computing power is the only performance obligation in the Company’s contracts with pool operators. When the Company successfully places a block (by being the first to solve an algorithm) and the Company receives confirmation of the consideration it will receive, at which time revenue is recognized. The transaction consideration the Company receives is noncash consideration, which the Company measures at fair value on the date received. The consideration is dependent on the number of digital assets mined on any given day. digital Fair value of the digital currency award received is determined using the spot price of the related digital currency at the time of receipt. There is currently no specific definitive guidance under GAAP or alternative accounting framework for the accounting for digital currencies recognized as revenue or held, and management has exercised significant judgment in determining the appropriate accounting treatment. In the event authoritative guidance is enacted by the FASB, the Company may be required to change its policies, which could have an effect on the Company’s consolidated financial position and results from operations. Variable Consideration The nature of the Company’s contracts gives rise to several types of variable consideration, including claims and unpriced change orders, awards and incentive fees, and liquidated damages and penalties. The Company recognizes revenue for variable consideration when it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. The Company estimates the amount of revenue to be recognized on variable consideration using the expected value (i.e., the sum of a probability-weighted amount) or the most likely amount method, whichever is expected to better predict the amount. Factors considered in determining whether revenue associated with claims (including change orders in dispute and unapproved change orders in regard to both scope and price) should be recognized include the following: (a) the contract or other evidence provides a legal basis for the claim, (b) additional costs were caused by circumstances that were unforeseen at the contract date and not the result of deficiencies in the Company’s performance, (c) claim-related costs are identifiable and considered reasonable in view of the work performed, and (d) evidence supporting the claim is objective and verifiable. If the requirements for recognizing revenue for claims or unapproved change orders are met, revenue is recorded only when the costs associated with the claims or unapproved change orders have been incurred. Back charges to suppliers or subcontractors are recognized as a reduction of cost when it is determined that recovery of such cost is probable, and the amounts can be reliably estimated. Disputed back charges are recognized when the same requirements described above for claims accounting have been satisfied. The C Practical Expedients If the Company has a right to consideration from a customer in an amount that corresponds directly with the value of the Company’s performance completed to date (a service contract in which the Company bills a fixed amount for each hour of service provided), the Company recognizes revenue in the amount to which it has a right to invoice for services performed. The Company does not adjust the contract price for the effects of a significant financing component if the Company expects, at contract inception, that the period between when the Company transfers a service to a customer and when the customer pays for that service will be one year or less. The Company has made an accounting policy election to exclude from the measurement of the transaction price all taxes assessed by governmental authorities that are collected by the Company from its customers (use taxes, value added taxes, some excise taxes). For the three months ended December 31, 2020 and 2019, the Company reported revenues of $2,257,570 $976,824 |
Cash and cash equivalents | Cash and cash equivalents For purposes of the consolidated statements of cash flows, the Company considers all highly liquid investments and short-term debt instruments with original maturities of three months or less to be cash equivalents. There was $25,631,913 $3,126,202 |
Digital Currency | Digital Currency Digital currencies are included in current assets in the consolidated balance sheets. Digital currencies are recorded at cost less impairment. Digital currencies held are accounted for as intangible assets with indefinite useful lives. An intangible asset with an indefinite useful life is not amortized but assessed for impairment annually, or more frequently, when events or changes in circumstances occur indicating that it is more likely than not that the indefinite-lived asset is impaired. Impairment exists when the carrying amount exceeds its fair value, which is measured using the quoted price of the digital currency at the time its fair value is being measured. In testing for impairment, the Company has the option to first perform a qualitative assessment to determine whether it is more likely than not that an impairment exists. If it is determined that it is not more likely than not that an impairment exists, a quantitative impairment test is not necessary. If the Company concludes otherwise, it is required to perform a quantitative impairment test. To the extent an impairment loss is recognized, the loss establishes the new cost basis of the asset. Subsequent reversal of impairment losses is not permitted. Digital currencies awarded to the Company through its mining activities are included within operating activities on the accompanying consolidated statements of cash flows. The sales of digital currencies are included within investing activities in the accompanying consolidated statements of cash flows and any realized gains or losses from such sales are included in other income (expense) in the consolidated statements of operations. The Company accounts for its gains or losses in accordance with the first in first out (FIFO) method of accounting. The following table presents the activities of the digital currencies for the three months ended December 31, 2020: Digital currencies at December 31, 2020: Amount Balance at September 30, 2020 $ — Additions of digital currencies 733,410 Realized gain on sale of digital currencies 49,918 Sale of digital currencies (375,887) Balance at December 31, 2020 $ 407,441 |
Accounts receivable | Accounts receivable Accounts receivable is comprised of uncollateralized customer obligations due under normal trade terms. The Company performs ongoing credit evaluation of its customers and management closely monitors outstanding receivables based on factors surrounding the credit risk of specific customers, historical trends, and other information. The carrying amount of accounts receivable is reviewed periodically for collectability. If management determines that collection is unlikely, an allowance that reflects management’s best estimate of the amounts that will not be collected is recorded. Accounts receivable are presented net of an allowance for doubtful accounts of $42,970 $42,970 Retention receivable is the amount withheld by a customer until a contract is completed. Retention receivables of $0 $615 |
Investment securities | Investment securities Investment securities include debt securities and equity securities. Debt securities are classified as available for sale (“AFS”) and are reported as an asset in the Consolidated Balance Sheet at their estimated fair value. As the fair values of AFS debt securities change, the changes are reported net of income tax as an element of OCI, except for other-than-temporarily-impaired securities. When AFS debt securities are sold, the unrealized gains or losses are reclassified from OCI to non-interest income. Securities classified as AFS are securities that the Company intends to hold for an indefinite period of time, but not necessarily to maturity. Any decision to sell a security classified as AFS would be based on various factors, including significant movements in interest rates, changes in the maturity mix of the Company’s assets and liabilities, liquidity needs, decline in credit quality, and regulatory capital considerations. Interest income is recognized based on the coupon rate and increased by accretion of discounts earned or decreased by the amortization of premiums paid over the contractual life of the security. For individual debt securities where the Company either intends to sell the security or more likely than not will not recover all of its amortized cost, the OTTI is recognized in earnings equal to the entire difference between the security's cost basis and its fair value at the balance sheet date. For individual debt securities for which a credit loss has been recognized in earnings, interest accruals and amortization and accretion of premiums and discounts are suspended when the credit loss is recognized. Interest received after accruals have been suspended is recognized in income on a cash basis. The Company holds investments in both publicly held and privately held equity securities. However, as described in Note 1, the Company primarily operates in the alternative energy sector and in the digital currency mining sector, and thus, it is not in the business of investing in securities. Privately held equity securities are recorded at cost and adjusted for observable transactions for same or similar investments of the issuer (referred to as the measurement alternative) or impairment. All gains and losses on privately held equity securities, realized or unrealized, are recorded through gains or losses on equity securities on the consolidated statement of operations. Publicly held equity securities are based on fair value accounting with unrealized gains or losses resulting from changes in fair value reflected as unrealized gains or losses on equity securities in our consolidated statements of operations. |
Concentration Risk | Concentration Risk At times throughout the year, the Company may maintain cash balances in certain bank accounts in excess of FDIC limits. As of December 31, 2020, the cash balance in excess of the FDIC limits was $25,379,232 |
Warranty Liability | Warranty Liability The Company establishes warranty liability reserves to provide for estimated future expenses as a result of installation and product defects, product recalls, and litigation incidental to the Company’s business. Liability estimates are determined based on management’s judgment, considering such factors as historical experience, the likely current cost of corrective action, manufacturers’ and subcontractors’ participation in sharing the cost of corrective action, consultations with third party experts such as engineers, and discussions with the Company’s general counsel and outside counsel retained to handle specific product liability cases. The Company’s manufacturers and service providers currently provide substantial warranties between ten to twenty-five years with full reimbursement to replace and install replacement parts. Warranty costs and associated liabilities were $0 $0 |
Stock-based compensation | Stock-based compensation The Company follows the guidelines in FASB Codification Topic ASC 718-10 “Compensation-Stock Compensation,” which requires companies to measure the cost of employee and non-employee services received in exchange for an award of an equity instrument based on the grant-date fair value of the award. Stock-based compensation expense is recognized on a straight-line basis over the requisite service period. The Company may issue compensatory shares for services including, but not limited to, executive, management, accounting, operations, corporate communication, financial and administrative consulting services. |
Earnings (loss) per share | Earnings (loss) per share The Company reports earnings (loss) per share in accordance with Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) 260-10 “Earnings Per Share,” which provides for calculation of “basic” and “diluted” earnings per share. Basic earnings per share includes no dilution and is computed by dividing net income or loss available to common stockholders by the weighted average common shares outstanding the period. Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of an entity. The calculation of diluted net loss per share gives effect to common stock equivalents; however, potential common shares are excluded if their effect is anti-dilutive. As of December 31, 2020, there are 1,562,092 |
Property and equipment | Property and equipment Property and equipment are stated at cost. Depreciation is calculated on a straight-line basis over the estimated useful life of the asset as follows: Useful life Machinery and equipment 3 5 Mining equipment 3 years Leasehold improvements Shorter of estimated lease term or 5 Furniture and fixtures 3 5 |
Long-lived Assets | Long-lived Assets In accordance with the Financial Accounting Standards Board ("FASB") Accounts Standard Codification (ASC) ASC 360-10, "Property, Plant and Equipment," the carrying value of intangible assets and other long-lived assets is reviewed on a regular basis for the existence of facts or circumstances that may suggest impairment. The Company recognizes impairment when the sum of the expected undiscounted future cash flow is less than the carrying amount of the asset. Impairment losses, if any, are measured as the excess of the carrying amount of the asset over its estimated fair value. For the three months ended December 31, 2020 and 2019, the Company did not record an impairment expense. |
Intangible Assets and Goodwill | Intangible Assets and Goodwill The Company accounts for business combinations under the acquisition method of accounting in accordance with ASC 805, “Business Combinations,” where the total purchase price is allocated to the tangible and identified intangible assets acquired and liabilities assumed based on their estimated fair values. The purchase price is allocated using the information currently available, and may be adjusted, up to one year from acquisition date, after obtaining more information regarding, among other things, asset valuations, liabilities assumed, and revisions to preliminary estimates. The purchase price in excess of the fair value of the tangible and identified intangible assets acquired less liabilities assumed is recognized as goodwill. The Company reviews its indefinite lived intangibles and goodwill for impairment annually or whenever events or circumstances indicate that the carrying amount of the asset exceeds its fair value and may not be recoverable. In accordance with its policies, the Company performed an assessment of indefinite lived intangibles and goodwill and determined there was no impairment for the three months ended December 31, 2020 and 2019. |
Software Development Costs | Software Development Costs The Company capitalizes software development costs under guidance of ASC 985-20 “Costs of Software to be Sold, Leased or Marketed” for our mPulse platform and under ASC 350-40 “Internal Use Software” for our mVSO, Canvas & Plaid products. Software development costs include payments made to independent software developers under development agreements, as well as direct costs incurred for internally developed products. Software development costs are capitalized once the technological feasibility of a product is established and such costs are determined to be recoverable. Technological feasibility of a product requires both technical design documentation and infrastructure design documentation, or the completed and tested product design and a working model. Significant management judgments and estimates are utilized in the assessment of when technological feasibility is established, and the evaluation is performed on a product-by-product basis. For products where proven technology exists, this may occur early in the development cycle. Prior to a product's release, if and when we we Commencing upon a product's release, capitalized software development costs are amortized to "Cost of revenues—software amortization" based on the ratio of current revenues to total projected revenues for the specific product, generally resulting in an amortization period of seven years for our current product offerings. In recognition of the uncertainties involved in estimating future revenue, amortization will never be less than straight-line amortization of the products remaining estimated economic life. We evaluate the future recoverability of capitalized software development costs on a quarterly basis. For products that have been released in prior periods, the primary evaluation criterion is the actual performance of the software platform to which the costs relate. For products that are scheduled to be released in future periods, recoverability is evaluated based on the expected performance of the specific products to which the costs relate. Criteria used to evaluate expected product performance include: historical performance of comparable products developed with comparable technology, market performance of comparable software, orders for the product prior to its release, pending contracts, and general market conditions. Significant management judgments and estimates are utilized in assessing the recoverability of capitalized costs. In evaluating the recoverability of capitalized costs, the assessment of expected product performance utilizes forecasted sales amounts and estimates of additional costs to be incurred. If revised forecasted or actual product sales are less than the originally forecasted amounts utilized in the initial recoverability analysis, the net realizable value may be lower than originally estimated in any given quarter, which could result in an impairment charge. Material differences may result in the amount and timing of expenses for any period if matters resolve in a manner that is inconsistent with management's expectations. If an impairment occurs, the reduced amount of the capitalized software costs that have been written down to the net realizable value at the close of each annual fiscal period will be considered the cost for subsequent accounting purposes. |
Fair value of financial instruments and derivative asset | Fair value of financial instruments and derivative asset The carrying value of cash, accounts payable and accrued expenses, and debt (See Notes 8 and 9) approximate their fair values because of the short-term nature of these instruments. Management believes the Company is not exposed to significant interest or credit risks arising from these financial instruments. The carrying amount of the Company’s long-term debt is also stated at fair value of $531,169 Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value maximize the use of observable inputs and minimize the use of unobservable inputs. The Company utilizes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable. • Level 1 Quoted prices in active markets for identical assets or liabilities. These are typically obtained from real-time quotes for transactions in active exchange markets involving identical assets. • Level 2 Quoted prices for similar assets and liabilities in active markets; quoted prices included for identical or similar assets and liabilities that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. These are typically obtained from readily-available pricing sources for comparable instruments. • Level 3 Unobservable inputs, where there is little or no market activity for the asset or liability. These inputs reflect the reporting entity’s own beliefs about the assumptions that market participants would use in pricing the asset or liability, based on the best information available in the circumstances. The following table presents the Company’s financial instruments that are measured and recorded at fair value on the Company’s balance sheets on a recurring basis, and their level within the fair value hierarchy as of December 31, 2020 and September 30, 2020, respectively: Fair value measured at December 31, 2020 Amount Level 1 Level 2 Level 3 Derivative asset $ 1,094,775 $ — $ — $ 1,094,775 Investment in equity security 136,500 136,500 — $ — Investment debt security 500,000 — — 500,000 Total $ 1,731,275 $ 136,500 $ — $ 1,594,775 Fair value measured at September 30, 2020 Amount Level 1 Level 2 Level 3 Derivative asset $ 2,115,269 $ — $ — $ 2,115,269 Investment in equity security 210,000 210,000 — $ — Investment in debt security 500,000 — — 500,000 Total $ 2,825,269 $ 210,000 $ — $ 2,615,269 The below table presents the change in the fair value of the derivative asset and investment in debt security during the three months ended December 31, 2020: Amount Balance at September 30, 2020 $ 2,615,269 Gain/(loss) on derivative asset ( 1,020,494 Balance at December 31, 2020 $ 1,594,775 |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified for consistency with the current period presentation. These reclassifications had no effect on the reported results of operations or net assets of the Company. |
Segment Reporting | Segment Reporting Operating segments are defined as components of an enterprise for which separate financial information is available and evaluated regularly by the chief operating decision maker, or decision-making group, in deciding the method to allocate resources and assess performance. The Company currently has three reportable segments for financial reporting purposes. |
Recently issued accounting pronouncements | Recently issued accounting pronouncements In August 2018, the FASB issued ASU 2018-15, "Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract," which allows for the capitalization of certain implementation costs incurred in a hosting arrangement that is a service contract. ASU 2018-15 allows for either retrospective adoption or prospective adoption to all implementation costs incurred after the date of adoption. ASU 2018-15 is effective for fiscal years beginning after December 15, 2019. The new standard did not have a material impact on the Company’s results of operations or cash flows. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. The purpose of the standard is to improve the overall usefulness of fair value disclosures to financial statement users and reduce unnecessary costs to companies when preparing the disclosures. ASU 2018-13 is effective for for fiscal years beginning after December 15, 2019 and requires the application of the prospective method of transition (for only the most recent interim or annual period presented in the initial fiscal year of adoption) to the new disclosure requirements for (1) changes in unrealized gains and losses included in other comprehensive income and (2) the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. ASU 2018-13 also requires prospective application to any modifications to disclosures made because of the change to the requirements for the narrative description of measurement uncertainty. The effects of all other amendments made by ASU 2018-13 must be applied retrospectively to all periods presented. The new standard did not have a material impact on the Company’s results of operations or cash flows. In January 2017, the FASB issued guidance within ASU 2017-04, Intangibles-Goodwill and Other. The amendments in ASU 2017-04 simplify the subsequent measurement of goodwill by comparing the fair value of a reporting unit with its carrying amount. ASU 2017-04 is effective for fiscal years beginning after December 15, 2019. The new standard did not have a material impact on the Company’s results of operations or cash flows. In June 2016, the FASB issued guidance within ASU 2016-13, Financial Instruments – Credit Losses. The amendments in ASU 2016-13 require assets measured at amortized cost and establishes an allowance of credit losses for available for sale debt securities. ASU 2016-13 is effective for fiscal years beginning after December 15, 2022. We are currently evaluating the impact the adoption of this new standard will have on our financial position and results of operations. The Company has evaluated all other recent accounting pronouncements and believes that none of them will have a material effect on the Company's financial position, results of operations or cash flows. |
2. SUMMARY OF SIGNIFICANT POL_3
2. SUMMARY OF SIGNIFICANT POLICIES (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Activities of Digital Currencies | Amount Balance at September 30, 2020 $ — Additions of digital currencies 733,410 Realized gain on sale of digital currencies 49,918 Sale of digital currencies (375,887) Balance at December 31, 2020 $ 407,441 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Useful Life of Property and Equipment | Useful life Machinery and equipment 3 5 Mining equipment 3 years Leasehold improvements Shorter of estimated lease term or 5 Furniture and fixtures 3 5 |
Financial Instruments Disclosure [Text Block] | Amount Level 1 Level 2 Level 3 Derivative asset $ 1,094,775 $ — $ — $ 1,094,775 Investment in equity security 136,500 136,500 — $ — Investment debt security 500,000 — — 500,000 Total $ 1,731,275 $ 136,500 $ — $ 1,594,775 Fair value measured at September 30, 2020 Amount Level 1 Level 2 Level 3 Derivative asset $ 2,115,269 $ — $ — $ 2,115,269 Investment in equity security 210,000 210,000 — $ — Investment in debt security 500,000 — — 500,000 Total $ 2,825,269 $ 210,000 $ — $ 2,615,269 The below table presents the change in the fair value of the derivative asset and investment in debt security during the three months ended December 31, 2020: |
SUMMARY OF SIGNIFICANT POLICIES - Fair Value of Drivative Asset | Amount Balance at September 30, 2020 $ 2,615,269 Gain/(loss) on derivative asset ( 1,020,494 Balance at December 31, 2020 $ 1,594,775 |
3. ACQUISITIONS (Tables)
3. ACQUISITIONS (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
ACQUISITIONS - ATL Consideration | Consideration: Fair Value 1,618,285 $ 21,183,351 Total Consideration $ 21,183,351 |
ACQUISITIONS - ATL Purchase Price Allocation | Purchase Price Allocation: Strategic contract $ 7,457,970 Goodwill $ 14,205,245 Other assets and liabilities assumed, net $ (479,864) Total $ 21,183,351 |
ACQUISITIONS - Pro Forma Information | For the Three Months Ended December 31, 2020 December 30, 2019 Net sales $ 4,343,169 $ 1,289,810 Net loss $ (6,458,903 ) $ (1,890,994) Loss per common share - basic and diluted $ (0.27 ) $ (0.29) Weighted average common shares outstanding - basic and diluted 23,765,277 6,521,486 |
ACQUISITIONS - P2K Consideration | Consideration: Fair Value Cash $ 1,155,000 95,699 $ 445,000 26,950 $ 88,935 Total Consideration $ 1,688,935 |
ACQUISITIONS - P2K Purchase Price Allocation | Purchase Price Allocation: Customer list $ 730,000 Design and other assets $ 123,000 Goodwill $ 957,388 Other assets and liabilities assumed, net $ ( 121,453 Total $ 1,688,935 |
ACQUISITIONS - GRIDFABRIC Consideration | Consideration: Fair Value Cash $ 400,000 26,427 $ 250,000 Contingent consideration - common stock issuable upon achievement of milestone(s) $ 750,000 Total Consideration $ 1,400,000 |
ACQUISITIONS - GRIDFABRIC Purchase Price Allocation | Purchase Price Allocation: Software $ 1,120,000 Customer list $ 60,000 Non-compete $ 190,000 Goodwill $ 26,395 Net Assets $ 3,605 Total $ 1,400,000 |
4. INVESTMENT IN INTERNATIONA_2
4. INVESTMENT IN INTERNATIONAL LAND ALLIANCE (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Schedule of Investments [Abstract] | |
INVESTMENTS IN INTERNATIONAL LAND ALLIANCE - | Fair value assumptions: December 31, 2020 Risk free interest rate 0.09% Expected term (months) — Expected volatility 147.25% Expected dividends 0% |
5. CAPITALIZED SOFTWARE (Tables
5. CAPITALIZED SOFTWARE (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Research and Development [Abstract] | |
CAPITALIZED SOFTWARE | December 31, 2020 September 30, 2020 mVSO software $ 437,135 $ 437,135 mPulse software 741,846 741,846 Less: accumulated amortization (242,064 ) (202,778) Capitalized Software, net $ 936,917 $ 976,203 |
6. INTANGIBLE ASSETS (Tables)
6. INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS - Estimated Useful Life | Useful life Patents 15 20 Websites 3 Customer list and non-compete agreement 3 4 Design assets 2 Trademarks 14 Engineering trade secrets 7 years Strategic contract 5 Software 2 3 |
INTANGIBLE ASSETS - Schedule of Intangible Assets | December 31, 2020 September 30, 2020 Patents $ 74,112 $ 74,112 Websites 8,115 8,115 Customer list and non-compete agreement 6,702,024 6,702,024 Design assets 123,000 123,000 Trademarks 5,928 5,928 Trade secrets 4,370,269 4,370,269 Software 1,120,000 1,120,000 Strategic Contract 7,457,970 — Intangible assets: 19,861,418 12,403,448 Less: accumulated amortization (6,220,997 ) (5,353,792) Intangible assets, net $ 13,640,421 $ 7,049,656 |
INTANGIBLE ASSETS - Amortization Expense | 2021 $ 3,224,597 2022 4,003,379 2023 2,486,842 2024 2,100,124 2025 1,491,800 Thereafter 333,679 Total $ 13,640,421 |
7. FIXED ASSETS (Tables)
7. FIXED ASSETS (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
FIXED ASSETS - Schedule of Property Pant and Equipment | December 31, 2020 September 30, 2020 Machinery and equipment $ 1,288,911 $ 193,042 Mining equipment 5,475,000 — Leasehold improvements 17,965 17,965 Furniture and fixtures 101,628 82,547 Total 6,883,504 293,554 Less: accumulated depreciation (399,367 ) (175,560) Fixed assets, net $ 6,484,137 $ 117,994 |
8. LOANS (Tables)
8. LOANS (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
LOANS - Long Term | Long-term loans payable consists of the following: December 31, 2020 September 30, 2020 Promissory notes $ 531,169 $ 531,169 Total $ 531,169 $ 531,169 |
10. LEASES (Tables)
10. LEASES (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
LEASES | Fiscal year ending September 30, 2021 506,880 Fiscal year ending September 30, 2022 420,904 Total Lease Payments 930,545 Less: imputed interest ( 62,343 Total present value of lease liabilities $ 865,441 |
LEASES - Financing Lease Liability | Fiscal year ending September 30, 2021 303,988 Fiscal year ending September 30, 2022 405,317 Fiscal year ending September 30, 2023 312,781 Fiscal year ending September 30, 2024 127,784 Total Lease Payments 1,149,870 Less: imputed interest ( 158,486 Total present value of lease liabilities $ 991,384 |
13. STOCK WARRANTS (Tables)
13. STOCK WARRANTS (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Stock Warrants | |
STOCK WARRANTS - Schedule of Warrant Summary | Number of Warrant Shares Weighted Average Exercise Price Balance, September 30, 2020 1,299,065 $ 21.78 Warrants granted — — Warrants expired — — Warrants canceled — — Warrants exercised 107,296 1.77 Balance, December 31, 2020 1,191,769 $ 23.63 |
14. STOCK OPTIONS (Tables)
14. STOCK OPTIONS (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
STOCK OPTIONS - Schedule of Option Summary | Number of Option Shares Weighted Average Exercise Price Balance, September 30, 2020 277,948 $ 6.34 Options granted 291,500 8.68 Options expired 11,008 7.93 Options cancelled — — Options exercised 10,383 — Balance, December 31, 2020 548,057 $ 7.66 |
STOCK OPTIONS - Fair Value Assumptions 2020 | Fair value assumptions – Options: December 31, 2020 Risk free interest rate 0.18 0.22 Expected term (years) 3 Expected volatility 167% 172% Expected dividends 0 |
STOCK OPTIONS - Fair Value Assumptions 2019 | Fair value assumptions – Options: December 31, 2019 Risk free interest rate 1.52 1.73 Expected term (years) 3 5 Expected volatility 124% 144% Expected dividends 0 |
16. MAJOR CUSTOMERS AND VENDO_2
16. MAJOR CUSTOMERS AND VENDORS (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
MAJOR CUSTOMERS AND VENDORS - Customers | December 31, 2020 December 31, 2019 Customer A 37.7 % 91.2% Customer B 10.3 % — |
MAJOR CUSTOMERS AND VENDORS - Suppliers | December 31, 2020 December 31, 2019 Vendor A 57.8 % 93.0% Vendor B 16.3 % — |
17. SEGMENT REPORTING (Tables)
17. SEGMENT REPORTING (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING - Segmnent Reporting Assets | Digital Currency Mining Segment ATL Data Centers, LLC, this segment mines digital assets, namely Bitcoin. SEGMENT REPORTING - Segmnent Reporting Assets December 31, 2020 Energy Digital Agency Digital Currency Mining Inter-segment Consolidated Revenues $ 1,224,622 $ 381,326 $ 733,410 $ (81,788 ) $ 2,257,570 Cost of revenues 1,074,495 89,349 169,046 — 1,332,890 Gross profit 150,127 291,976 564,364 (81,788 ) 924,680 Operating expenses 6,779,393 287,562 109,611 (81,788 ) 7,094,778 — — — Income/(loss) from operations (6,629,266 ) 4,415 454,753 — (6,170,098) Capital expenditures 15,175 3,907 — — 19,082 Depreciation and amortization $ 717,677 $ 76,408 $ 284,344 — $ 1,078,429 December 31, 2020 Energy Digital Agency Digital Currency Mining Consolidated Accounts Receivable $ 1,292,571 $ 245,780 $ 86,117 $ 1,624,648 Goodwill $ 4,926,254 $ 977,388 $ 14,205,245 $ 20,108,887 Total Assets $ 43,917,930 $ 2,295,658 $ 31,959,148 $ 78,172,736 |
1. ORGANIZATION AND LINE OF B_2
1. ORGANIZATION AND LINE OF BUSINESS (Details Narrative) | 3 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Date of incorporation | Oct. 15, 1987 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Activities of Digital Currencies (Details) | 3 Months Ended |
Dec. 31, 2020USD ($) | |
Accounting Policies [Abstract] | |
Other assets, fair value | |
Additions of digital securities | 733,410 |
Realized gain on sale of digital currencies | 49,918 |
Sale of digital currencies | (375,887) |
Other assets, fair value | $ 407,441 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Useful Life of Property and Equipment (Details) | 3 Months Ended |
Dec. 31, 2020 | |
Machinery and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Furniture and Fixtures [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Furniture and Fixtures [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
SUMMARY OF SIGNIFICANT POLICIES
SUMMARY OF SIGNIFICANT POLICIES - Fair Value of Financial Instruments (Details) - USD ($) | Dec. 31, 2020 | Sep. 30, 2020 |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Derivative Asset | $ 1,094,775 | $ 2,115,269 |
Equity Securities, FV-NI | 386,500 | 460,000 |
Amount [Member] | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Derivative Asset | 1,094,775 | 2,115,269 |
Equity Securities, FV-NI | 136,500 | 210,000 |
Debt Securities | 500,000 | 500,000 |
Financial Instruments, Owned, Principal Investments, at Fair Value | 1,731,275 | 2,825,269 |
Level 1 | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Derivative Asset | ||
Equity Securities, FV-NI | 136,500 | 210,000 |
Debt Securities | ||
Financial Instruments, Owned, Principal Investments, at Fair Value | 136,500 | 210,000 |
Level 2 | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Derivative Asset | ||
Equity Securities, FV-NI | ||
Debt Securities | ||
Financial Instruments, Owned, Principal Investments, at Fair Value | ||
Level 3 | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Derivative Asset | 1,094,775 | 2,115,269 |
Equity Securities, FV-NI | ||
Debt Securities | 500,000 | 500,000 |
Financial Instruments, Owned, Principal Investments, at Fair Value | $ 1,594,775 | $ 2,615,269 |
SUMMARY OF SIGNIFICANT POLICI_2
SUMMARY OF SIGNIFICANT POLICIES - Fair Value of Drivative Asset (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2020 | Sep. 30, 2020 | |
Accounting Policies [Abstract] | ||
Derivative Asset, Current | $ 1,594,775 | $ 2,615,269 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Earnings | $ 1,020,494 |
2. SUMMARY OF SIGNIFICANT POL_4
2. SUMMARY OF SIGNIFICANT POLICIES (Details Narrative) - USD ($) | 3 Months Ended | 15 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2019 | Sep. 30, 2020 | |
Accounting Policies [Abstract] | ||||
Net Income (Loss) Attributable to Parent | $ 7,167,530 | $ 1,916,254 | $ 1,916,254 | |
Banking Regulation, Total Capital, Actual | 28,711,558 | |||
Contracts Receivable, Claims and Uncertain Amounts | 0 | |||
Inventory, Work in Process, Gross | 906 | 4,103 | 4,103 | |
Contract with Customer, Asset, after Allowance for Credit Loss | 0 | 0 | 0 | |
Contract with Customer, Liability | 63,603 | 64,108 | 64,108 | $ 64,198 |
Revenues | 2,257,570 | 976,824 | 976,824 | |
Cash | 25,631,913 | 3,126,202 | 3,126,202 | |
Allowance for Doubtful Accounts, Premiums and Other Receivables | 42,970 | 42,970 | 42,970 | |
Receivables from Customers | 0 | 615 | 615 | |
FDIC Indemnification Asset, Period Increase (Decrease) | 25,379,232 | |||
Standard and Extended Product Warranty Accrual | 0 | $ 0 | $ 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | 1,562,092 | |||
Long-term debt, fair value | $ 531,169 |
ACQUISITIONS - ATL Consideratio
ACQUISITIONS - ATL Consideration (Details) - USD ($) | Dec. 31, 2020 | Dec. 09, 2020 | Sep. 30, 2020 | Aug. 31, 2020 | Jan. 31, 2020 |
Business Combinations [Abstract] | |||||
Common stock, shares issued | 24,070,531 | 1,618,285 | 17,390,979 | 26,427 | 95,699 |
Common stock issued, value | $ 24,071 | $ 21,183,351 | $ 17,391 | $ 250,000 | $ 445,000 |
Total consideration | $ 21,183,351 | $ 1,400,000 | $ 1,688,935 |
ACQUISITIONS - ATL Purchase Pr
ACQUISITIONS - ATL Purchase Price Allocation (Details) - USD ($) | Dec. 31, 2020 | Dec. 09, 2020 | Sep. 30, 2020 | Aug. 31, 2020 | Jan. 31, 2020 |
Business Acquisition [Line Items] | |||||
Strategic contract | $ 7,457,970 | ||||
Goodwill | $ 20,108,887 | $ 5,903,641 | $ 26,395 | $ 957,388 | |
Other assets and liabilities assumed, net | 3,605 | 121,453 | |||
Total consideration | 21,183,351 | $ 1,400,000 | $ 1,688,935 | ||
A T L Data Centers [Member] | |||||
Business Acquisition [Line Items] | |||||
Goodwill | 14,205,245 | ||||
Other assets and liabilities assumed, net | (479,864) | ||||
Total consideration | $ 21,183,351 |
ACQUISITIONS - Pro Forma Inform
ACQUISITIONS - Pro Forma Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 15 Months Ended | ||||
Jan. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 09, 2020 | Sep. 30, 2020 | Aug. 31, 2020 | |
Business Acquisition [Line Items] | |||||||
Net sales | $ 2,257,570 | $ 976,824 | $ 976,824 | ||||
Net loss | $ (7,167,530) | $ (1,916,254) | $ (1,916,254) | ||||
Weighted average common shares outstanding - basic and diluted | 22,146,992 | 4,781,075 | |||||
Business Acquisition, Transaction Costs | $ 1,039,500 | $ 360,000 | |||||
Common Stock, Shares, Issued | 95,699 | 24,070,531 | 1,618,285 | 17,390,979 | 26,427 | ||
Common Stock, Value, Issued | $ 445,000 | $ 24,071 | $ 21,183,351 | $ 17,391 | $ 250,000 | ||
Debt Conversion, Converted Instrument, Warrants or Options Issued | 26,950 | 26,950 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 88,935 | $ 11,800,257 | |||||
Third Party | |||||||
Business Acquisition [Line Items] | |||||||
Business Acquisition, Transaction Costs | $ 115,500 | ||||||
Common Stock, Shares, Issued | 64,516 | ||||||
Common Stock, Value, Issued | $ 300,000 | ||||||
Shares Issued, Price Per Share | $ 4.65 | ||||||
Restricted Stock [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Common Stock, Shares, Issued | 31,183 | ||||||
Common Stock, Value, Issued | $ 145,000 | ||||||
Pro Forma [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Net sales | 4,343,169 | $ 1,289,810 | |||||
Net loss | $ (6,458,903) | $ (1,890,994) | |||||
Loss per common share - basic and diluted | $ (0.27) | $ (0.29) | |||||
Weighted average common shares outstanding - basic and diluted | 23,765,277 | 6,521,486 | |||||
P 2 K Labs [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Lock-up and leak-out provisions | Seller may sell an amount of Shares equal to ten percent (10%) of the daily dollar trading volume of the Company’s common stock on its principal market for the prior 30 days |
ACQUISITIONS - P2K Consideratio
ACQUISITIONS - P2K Consideration (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |||
Jan. 31, 2020 | Dec. 31, 2020 | Dec. 09, 2020 | Sep. 30, 2020 | Aug. 31, 2020 | |
Entity Listings [Line Items] | |||||
Cash | $ 1,039,500 | $ 360,000 | |||
Common stock, shares issued | 95,699 | 24,070,531 | 1,618,285 | 17,390,979 | 26,427 |
Common stock; $0.001 par value; 35,000,000 shares authorized; 24,070,531 and 17,390,979 shares issued and outstanding as of December 31, 2020 and September 30, 2020, respectively | $ 445,000 | $ 24,071 | $ 21,183,351 | $ 17,391 | $ 250,000 |
Debt Conversion, Converted Instrument, Warrants or Options Issued | 26,950 | 26,950 | |||
Cash | $ 88,935 | $ 11,800,257 | |||
Cash | 1,688,935 | $ 21,183,351 | 1,400,000 | ||
Third Party Two [Member] | |||||
Entity Listings [Line Items] | |||||
Cash | $ 1,155,000 | $ 400,000 |
ACQUISITIONS - P2K Purchase Pr
ACQUISITIONS - P2K Purchase Price Allocation (Details) - USD ($) | 3 Months Ended | ||||
Dec. 31, 2020 | Dec. 09, 2020 | Sep. 30, 2020 | Aug. 31, 2020 | Jan. 31, 2020 | |
Business Acquisition [Line Items] | |||||
Customer list | $ 6,702,024 | $ 6,702,024 | $ 1,120,000 | $ 730,000 | |
Design and other assets | 60,000 | 123,000 | |||
Goodwill | $ 20,108,887 | $ 5,903,641 | 26,395 | 957,388 | |
Other assets and liabilities assumed, net | 3,605 | 121,453 | |||
Total | $ 21,183,351 | 1,400,000 | 1,688,935 | ||
Business Acquisition, Transaction Costs | $ 360,000 | $ 1,039,500 | |||
Common Stock, Shares, Issued | 24,070,531 | 1,618,285 | 17,390,979 | 26,427 | 95,699 |
Common Stock, Value, Issued | $ 24,071 | $ 21,183,351 | $ 17,391 | $ 250,000 | $ 445,000 |
Grid Fabric [Member] | |||||
Business Acquisition [Line Items] | |||||
Lock-up and leak-out provisions | Seller may sell an amount of Shares equal to no more than ten percent (10%) of the daily dollar trading volume of the Company’s common stock on its principal market for the prior 30 days | ||||
Third Party Two [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Acquisition, Transaction Costs | 400,000 | $ 1,155,000 | |||
Grid Fabric Additional Shares Issuable [Member] | |||||
Business Acquisition [Line Items] | |||||
Common Stock, Value, Issued | $ 750,000 |
ACQUISITIONS - GRIDFABRIC Consi
ACQUISITIONS - GRIDFABRIC Consideration (Details) - USD ($) | Dec. 31, 2020 | Dec. 09, 2020 | Sep. 30, 2020 | Aug. 31, 2020 | Jan. 31, 2020 |
Entity Listings [Line Items] | |||||
Cash | $ 360,000 | $ 1,039,500 | |||
Common stock, shares issued | 24,070,531 | 1,618,285 | 17,390,979 | 26,427 | 95,699 |
Common stock issued, value | $ 24,071 | $ 21,183,351 | $ 17,391 | $ 250,000 | $ 445,000 |
Contingent consideration | 750,000 | ||||
Total | $ 21,183,351 | 1,400,000 | 1,688,935 | ||
Third Party Two [Member] | |||||
Entity Listings [Line Items] | |||||
Cash | $ 400,000 | $ 1,155,000 |
ACQUISITIONS - GRIDFABRIC Purc
ACQUISITIONS - GRIDFABRIC Purchase Price Allocation (Details) - USD ($) | Dec. 31, 2020 | Dec. 09, 2020 | Sep. 30, 2020 | Aug. 31, 2020 | Jan. 31, 2020 |
Business Combinations [Abstract] | |||||
Software | $ 6,702,024 | $ 6,702,024 | $ 1,120,000 | $ 730,000 | |
Customer list | 60,000 | 123,000 | |||
Goodwill | $ 20,108,887 | $ 5,903,641 | 26,395 | 957,388 | |
Net assets | 3,605 | 121,453 | |||
Total | $ 21,183,351 | $ 1,400,000 | $ 1,688,935 |
3. ACQUISITIONS (Details Narrat
3. ACQUISITIONS (Details Narrative) - USD ($) | 3 Months Ended | ||||
Dec. 31, 2020 | Dec. 09, 2020 | Sep. 30, 2020 | Aug. 31, 2020 | Jan. 31, 2020 | |
Business Acquisition [Line Items] | |||||
Common stock, shares issued | 24,070,531 | 1,618,285 | 17,390,979 | 26,427 | 95,699 |
Common stock issued, value | $ 24,071 | $ 21,183,351 | $ 17,391 | $ 250,000 | $ 445,000 |
Digital currency mining equipment and notes payable | $ 1,288,911 | $ 193,042 | |||
Total consideration | $ 21,183,351 | $ 1,400,000 | $ 1,688,935 | ||
Third Party Two [Member] | |||||
Business Acquisition [Line Items] | |||||
Shares issued, price per share | $ 9.46 | ||||
Earned On Closing [Member] | |||||
Business Acquisition [Line Items] | |||||
Common stock, shares issued | 642,309 | ||||
Escrow [Member] | |||||
Business Acquisition [Line Items] | |||||
Common stock, shares issued | 975,976 | ||||
Broker [Member] | |||||
Business Acquisition [Line Items] | |||||
Common stock, shares issued | 41,708 | ||||
Common stock issued, value | $ 545,916 | ||||
A T L Data Centers [Member] | |||||
Business Acquisition [Line Items] | |||||
Lock-up and leak-out provisions | with all such shares subject to a lock up of no less than 180 days and a leak out of no more than 10% of the average daily trading value of the prior 30 days. | ||||
Total consideration | $ 21,183,351 | ||||
Restricted Stock [Member] | |||||
Business Acquisition [Line Items] | |||||
Common stock, shares issued | 31,183 | ||||
Common stock issued, value | $ 145,000 | ||||
Restricted Stock [Member] | A T L Data Centers [Member] | |||||
Business Acquisition [Line Items] | |||||
Common stock, shares issued | 1,618,285 | ||||
Shares issued, price per share | $ 11.988 |
INVESTMENTS IN INTERNATIONAL LA
INVESTMENTS IN INTERNATIONAL LAND ALLIANCE - (Details) - International Land Alliance | 3 Months Ended |
Dec. 31, 2020 | |
Investment Holdings [Line Items] | |
Risk free interest rate | 0.09% |
Expected volatility | 147.25% |
Expected dividends | 0.00% |
4. INVESTMENT IN INTERNATIONA_3
4. INVESTMENT IN INTERNATIONAL LAND ALLIANCE (Details Narrative) - USD ($) | 1 Months Ended | |||||
Nov. 05, 2019 | Dec. 31, 2020 | Dec. 09, 2020 | Sep. 30, 2020 | Aug. 31, 2020 | Jan. 31, 2020 | |
Investment Holdings [Line Items] | ||||||
Common Stock, Value, Issued | $ 24,071 | $ 21,183,351 | $ 17,391 | $ 250,000 | $ 445,000 | |
Commitment Shares | ||||||
Investment Holdings [Line Items] | ||||||
Additional Paid in Capital, Common Stock | $ 350,000 | |||||
Common Stock, Value, Issued | $ 136,500 | |||||
International Land Alliance | ||||||
Investment Holdings [Line Items] | ||||||
Investment Owned, Balance, Shares | 1,000 | |||||
Investment Owned, Face Amount | $ 500,000 | |||||
Debt Instrument, Convertible, Terms of Conversion Feature | The Preferred Stock will accrue cumulative in-kind accruals at a rate of 12% per annum and may increase upon the occurrence of certain events. The Preferred Stock is now convertible into common stock at a variable rate as calculated under the agreement terms. |
CAPITALIZED SOFTWARE (Details)
CAPITALIZED SOFTWARE (Details) - USD ($) | Dec. 31, 2020 | Sep. 30, 2020 |
Research and Development [Abstract] | ||
mVSO software | $ 437,135 | $ 437,135 |
mPulse software | 741,846 | 741,846 |
Less: accumulated amortization | (242,064) | (202,778) |
Capitalized Software, net | $ 936,917 | $ 976,203 |
5. CAPITALIZED SOFTWARE (Detail
5. CAPITALIZED SOFTWARE (Details Narrative) - USD ($) | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Research and Development [Abstract] | ||
Research and Development Expense, Software (Excluding Acquired in Process Cost) | $ 39,286 | $ 39,286 |
INTANGIBLE ASSETS - Estimated
INTANGIBLE ASSETS - Estimated Useful Life (Details) | 3 Months Ended |
Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | |
Strategic contract | 5 years |
Patents [Member] | Patents Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 15 years |
Patents [Member] | Patents Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 20 years |
Websites [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
[custom:WebsitesUsefulLife] | 3 years |
Customer List [Member] | Customer List Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
[custom:CustomerListAndNonCompeteUsefulLife] | 3 years |
Customer List [Member] | Customer List Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
[custom:CustomerListAndNonCompeteUsefulLife] | 4 years |
Design Assets [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
[custom:DesignAssetsUsefulLife] | 2 years |
Trademarks [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
[custom:TrademarksUsefulLife] | 14 years |
Engineering [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
[custom:EnginerringTradeSecretsUsefulLife] | 7 years |
Software [Member] | Software Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
[custom:SooftwareUsefulLife] | 2 years |
Software [Member] | Software Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
[custom:SooftwareUsefulLife] | 3 years |
INTANGIBLE ASSETS - Schedule o
INTANGIBLE ASSETS - Schedule of Intangible Assets (Details) - USD ($) | Dec. 31, 2020 | Sep. 30, 2020 | Aug. 31, 2020 | Jan. 31, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Patents | $ 74,112 | $ 74,112 | ||
Websites | 8,115 | 8,115 | ||
Customer list and non-compete agreement | 6,702,024 | 6,702,024 | $ 1,120,000 | $ 730,000 |
Design assets | 123,000 | 123,000 | ||
Trademarks | 5,928 | 5,928 | ||
Trade secrets | 4,370,269 | 4,370,269 | ||
Software | 1,120,000 | 1,120,000 | ||
Strategic Contract | 7,457,970 | |||
Intangible assets: | 19,861,418 | 12,403,448 | ||
Less: accumulated amortization | (6,220,997) | (5,353,792) | ||
Intangible assets, net | $ 13,640,421 | $ 7,049,656 |
INTANGIBLE ASSETS - Amortizatio
INTANGIBLE ASSETS - Amortization Expense (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2026 | Dec. 31, 2025 | Dec. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||||||||
Amortization of Intangible Assets | $ 867,205 | $ 613,115 | $ 333,679 | $ 1,491,800 | $ 2,100,124 | $ 2,486,842 | $ 4,003,379 | $ 3,224,597 |
Total Amortization [Member] | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Amortization of Intangible Assets | $ 13,640,421 |
6. INTANGIBLE ASSETS (Details N
6. INTANGIBLE ASSETS (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2026 | Dec. 31, 2025 | Dec. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||
Amortization of Intangible Assets | $ 867,205 | $ 613,115 | $ 333,679 | $ 1,491,800 | $ 2,100,124 | $ 2,486,842 | $ 4,003,379 | $ 3,224,597 |
Amortization expense, cost of revenues | $ 12,683 |
FIXED ASSETS - Schedule of Prop
FIXED ASSETS - Schedule of Property Pant and Equipment (Details) - USD ($) | Dec. 31, 2020 | Sep. 30, 2020 |
Property, Plant and Equipment [Abstract] | ||
Machinery and equipment | $ 1,288,911 | $ 193,042 |
Mining equipment | 5,475,000 | |
Leasehold improvements | 17,965 | 17,965 |
Furniture and fixtures | 101,628 | 82,547 |
Total | 6,883,504 | 293,554 |
Less: accumulated depreciation | (399,367) | (175,560) |
Fixed assets, net | $ 6,484,137 | $ 117,994 |
7. FIXED ASSETS (Details Narrat
7. FIXED ASSETS (Details Narrative) - USD ($) | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation | $ 223,907 | $ 13,662 |
LOANS - Long Term (Details)
LOANS - Long Term (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Disclosure [Abstract] | ||
Promissory notes | $ 531,169 | $ 531,169 |
Total | $ 531,169 | $ 531,169 |
8. LOANS (Details Narrative)
8. LOANS (Details Narrative) - PPP Loan - USD ($) | May 15, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | |||
Proceeds from Loans | $ 531,169 | ||
Debt Instrument, Maturity Date | May 7, 2022 | ||
Debt Instrument, Interest Rate During Period | 1.00% | ||
Long-term Debt, Description | Under the CARES Act, loan forgiveness is available for the sum of documented payroll costs, covered rent payments, and covered utilities during the eight-week period beginning on the date of loan approval. For purposes of the CARES Act, payroll costs exclude compensation of an individual employee in excess of $100,000, prorated annually. Not more than 25% of the forgiven amount may be for non-payroll costs. Forgiveness is reduced if full-time headcount declines, or if salaries and wages for employees with salaries of $100,000 or less annually are reduced by more than 25%. | ||
Interest Expense | $ 3,987 | $ 0 |
9. CONVERTIBLE NOTES PAYABLE (D
9. CONVERTIBLE NOTES PAYABLE (Details Narrative) - USD ($) | Mar. 04, 2020 | Apr. 17, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 09, 2020 | Sep. 30, 2020 | Aug. 31, 2020 | Jan. 31, 2020 |
Short-term Debt [Line Items] | |||||||||
Common Stock, Shares, Issued | 24,070,531 | 1,618,285 | 17,390,979 | 26,427 | 95,699 | ||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 23.63 | $ 21.78 | |||||||
Preferred Stock, Shares Issued | 1,750,000 | ||||||||
$20 per share | |||||||||
Short-term Debt [Line Items] | |||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 20 | ||||||||
$25 per share | |||||||||
Short-term Debt [Line Items] | |||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | 25 | ||||||||
$50 per share | |||||||||
Short-term Debt [Line Items] | |||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | 50 | ||||||||
$75 per share | |||||||||
Short-term Debt [Line Items] | |||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 75 | ||||||||
SPA 1 | |||||||||
Short-term Debt [Line Items] | |||||||||
Debt Instrument, Face Amount | $ 5,250,000 | ||||||||
Debt Instrument, Term | 2 years | ||||||||
Debt Instrument, Interest Rate During Period | 7.50% | ||||||||
Common Stock, Shares, Issued | 10,000 | ||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 308,333 | ||||||||
Warrants and Rights Outstanding, Term | 3 years | ||||||||
Debt Instrument, Unamortized Discount | $ 4,995,000 | ||||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | 5,000 | ||||||||
Payments for (Proceeds from) Short-term Investments | $ 5,000,000 | ||||||||
Debt Instrument, Redemption, Description | Prior to the maturity date, provided that no trigger event has occurred, the Company will have the right at any time upon 30 trading days’ prior written notice, in its sole and absolute discretion, to redeem all or any portion of the Debenture then outstanding by paying to the Investor an amount equal to 140% of the of the portion of the Debenture being redeemed | ||||||||
Debt Instrument, Convertible, Terms of Conversion Feature | The Investor may convert the Debenture into shares of the Company’s common stock at a conversion price equal to 95% of the mathematical average of the 5 lowest individual daily volume weighted average prices of the common stock, less $0.50 per share, during the period beginning on the issuance date and ending on the maturity date subject to certain floor price restrictions. In the event certain equity conditions exist, the Company may require that the Investor convert the Debenture. In no event shall the Debenture be allowed to affect a conversion if such conversion, along with all other shares of Company common stock beneficially owned by the Investor and its affiliates would exceed 4.99% of the outstanding shares of the common stock of the Company. | ||||||||
Debt Instrument, Convertible, Associated Derivative Transactions, Description | While the Debenture is outstanding, if triggering events occur, the conversion rate may be decreased by 10% and the interest rate increased by 10% for each triggering event which may result in the issuance of additional shares. | ||||||||
Floor price | $ 1.50 | ||||||||
Interest Expense, Debt, Excluding Amortization | $ 0 | $ 157,379 | |||||||
SPA 1 | $20 per share | |||||||||
Short-term Debt [Line Items] | |||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 125,000 | ||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 20 | ||||||||
SPA 1 | $25 per share | |||||||||
Short-term Debt [Line Items] | |||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 100,000 | ||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 25 | ||||||||
SPA 1 | $50 per share | |||||||||
Short-term Debt [Line Items] | |||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 50,000 | ||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 50 | ||||||||
SPA 1 | $75 per share | |||||||||
Short-term Debt [Line Items] | |||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 33,333 | ||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 75 | ||||||||
S P A 1 [Member] | Default Trigger Original [Member] | |||||||||
Short-term Debt [Line Items] | |||||||||
Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger | 500.00% | ||||||||
S P A 1 [Member] | Default Trigger Amended [Member] | |||||||||
Short-term Debt [Line Items] | |||||||||
Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger | 175.00% | ||||||||
SPA Two | |||||||||
Short-term Debt [Line Items] | |||||||||
Debt Instrument, Face Amount | $ 10,750,000 | ||||||||
Debt Instrument, Term | 2 years | ||||||||
Debt Instrument, Interest Rate During Period | 7.50% | ||||||||
Common Stock, Shares, Issued | 125,000 | ||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 230,000 | ||||||||
Payments for (Proceeds from) Short-term Investments | $ 10,000,000 | ||||||||
Debt Instrument, Redemption, Description | Prior to the maturity date, provided that no trigger event has occurred, the Company will have the right at any time upon 30 trading days’ prior written notice, in its sole and absolute discretion, to redeem all or any portion of the Note then outstanding by paying to the Investor an amount equal to 145% of the of the portion of the Note being redeemed. | ||||||||
Debt Instrument, Convertible, Terms of Conversion Feature | The Investor may convert the Note into shares of the Company’s common stock at a conversion price equal to 90% of the mathematical average of the 5 lowest individual daily volume weighted average prices of the common stock, less $0.75 per share, during the period beginning on the issuance date and ending on the maturity date subject to certain floor price restrictions. In the event certain equity conditions exist, the Company may require that the Investor convert the Note. In no event shall the Note be allowed to effect a conversion if such conversion, along with all other shares of Company common stock beneficially owned by the Investor and its affiliates would exceed 4.99% of the outstanding shares of the common stock of the Company. | ||||||||
Debt Instrument, Convertible, Associated Derivative Transactions, Description | While the Note is outstanding if triggering events occur the conversion rate may be decreased by 10% and the interest rate increased by 10% for each triggering event which may result in the issuance of additional shares. | ||||||||
Floor price | $ 1.50 | ||||||||
Interest Expense, Debt, Excluding Amortization | $ 0 | $ 1,354,795 | |||||||
Debt, Long-term and Short-term, Combined Amount | $ 20,000,000 | ||||||||
Debt Instrument, Interest Rate, Effective Percentage | 7.50% | ||||||||
Debt Instrument, Description | The Company and the Investor also agreed to remove the Second Closing and Company Option to sell an aggregate of an additional $10,000,000 in securities under the Note. As a result of these changes, the Company was authorized to terminate any and all documentation related to the 100,000 shares of Series B Preferred Stock that the Company's Board of Directors had previously voted to designate back on April 16, 2019. | ||||||||
SPA Two | Series B Preferred [Member] | |||||||||
Short-term Debt [Line Items] | |||||||||
Preferred Stock, Shares Issued | 215 | ||||||||
Shares Issued, Price Per Share | $ 7.05 | ||||||||
S P A 2 [Member] | Default Trigger Original [Member] | |||||||||
Short-term Debt [Line Items] | |||||||||
Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger | 500.00% | ||||||||
S P A 2 [Member] | Default Trigger Amended [Member] | |||||||||
Short-term Debt [Line Items] | |||||||||
Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger | 175.00% |
LEASES (Details)
LEASES (Details) - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | |||
Operating Lease, Liability | $ 420,904 | $ 506,880 | $ 865,441 |
Operating Leases, Future Minimum Payments Due | 930,545 | ||
Accounts Payable, Interest-bearing, Current | $ 62,343 |
LEASES - Financing Lease Liabil
LEASES - Financing Lease Liability (Details) - USD ($) | Sep. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | |||||
Finance Lease, Liability, Payment, Due | $ 303,988 | ||||
Finance Lease, Liability, to be Paid, Year Two | $ 405,317 | ||||
Finance Lease, Liability, to be Paid, Year Three | $ 312,781 | ||||
Finance Lease, Liability, to be Paid, Year Four | $ 127,784 | ||||
Total lease payments | $ 1,149,870 | ||||
Less: imputed interest | 158,486 | ||||
Total present value of lease liabilities | $ 991,384 |
10. LEASES (Details Narrative)
10. LEASES (Details Narrative) - USD ($) | 3 Months Ended | 15 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | Oct. 01, 2019 | |
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters [Line Items] | ||||||
Operating Lease, Right-of-Use Asset | $ 865,441 | $ 40,711 | ||||
Operating Lease, Liability | $ 865,441 | $ 420,904 | $ 506,880 | |||
Additional Liability, Long-Duration Insurance, Current Weighted-Average Discount Rate | 10.00% | |||||
Operating Lease, Weighted Average Remaining Lease Term | 1 year 4 months 20 days | |||||
Operating lease, weighted average discount rate | 10.00% | |||||
Operating Lease, Cost | $ 117,223 | $ 21,318 | ||||
Finance Lease, Weighted Average Remaining Lease Term | 3 years 7 days | |||||
Financing lease, weighted average discount | 8.60% | |||||
Lease Term Minimum | ||||||
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters [Line Items] | ||||||
Lessee, Operating Lease, Term of Contract | 1 year | |||||
Lease Term Maximum | ||||||
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters [Line Items] | ||||||
Lessee, Operating Lease, Term of Contract | 2 years |
11. RELATED PARTY TRANSACTIONS
11. RELATED PARTY TRANSACTIONS (Details Narrative) | 3 Months Ended |
Dec. 31, 2020USD ($) | |
Zachary Bradford Ownership | |
Related Party Transaction [Line Items] | |
Limited Liability Company or Limited Partnership, Members or Limited Partners, Ownership Interest | 50.00% |
Blue Chip Accounting | |
Related Party Transaction [Line Items] | |
Payment for Administrative Fees | $ 30,000 |
Payments for Rent | 4,575 |
Investor Relations | |
Related Party Transaction [Line Items] | |
Professional and Contract Services Expense | 27,000 |
Related Party Transaction, Expenses from Transactions with Related Party | $ 85,150 |
12. STOCKHOLDERS EQUITY (Detail
12. STOCKHOLDERS EQUITY (Details Narrative) | Oct. 06, 2020USD ($)$ / sharesshares | Dec. 10, 2019 | Oct. 04, 2019USD ($)$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)shares | Dec. 31, 2019USD ($) | Dec. 09, 2020USD ($)shares | Oct. 26, 2020USD ($)shares | Oct. 07, 2020shares | Oct. 02, 2020shares | Sep. 30, 2020USD ($)$ / sharesshares | Aug. 31, 2020USD ($)shares | Jan. 31, 2020USD ($)shares | Dec. 05, 2019$ / shares | Oct. 03, 2019shares | Apr. 16, 2019$ / sharesshares |
Class of Stock [Line Items] | ||||||||||||||||
Common Stock, Shares Authorized | 35,000,000 | 35,000,000 | ||||||||||||||
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 | ||||||||||||||
Preferred Stock, Par or Stated Value Per Share | $ / shares | $ 0.001 | $ 0.001 | ||||||||||||||
Common stock, shares issued | 24,070,531 | 1,618,285 | 17,390,979 | 26,427 | 95,699 | |||||||||||
Preferred Stock, Shares Issued | 1,750,000 | |||||||||||||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | |||||||||||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 1 | |||||||||||||||
Proceeds from Issuance of Private Placement | $ | $ 37,049,605 | |||||||||||||||
Common Stock, Value, Issued | $ | $ 24,071 | $ 21,183,351 | $ 17,391 | $ 250,000 | $ 445,000 | |||||||||||
Stock Issued During Period, Shares, Acquisitions | 1,618,285 | |||||||||||||||
Stock Issued During Period, Shares, Issued for Services | 43,188 | 2,000 | ||||||||||||||
Stock Issued During Period, Value, Issued for Services | $ | $ 3,011,634 | $ 34,100 | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 10,383 | |||||||||||||||
Stock Issued During Period, Value, Conversion of Convertible Securities | $ | ||||||||||||||||
Stock Issued During Period, Shares, Stock Splits | 793 | |||||||||||||||
Noninterest Expense Directors Fees | $ | $ 15,000 | |||||||||||||||
Services [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Stock Issued During Period, Value, Issued for Services | $ | $ 561 | |||||||||||||||
Common Stock [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Stock Issued During Period, Shares, Acquisitions | 1,618,285 | |||||||||||||||
Stock Issued During Period, Shares, Issued for Services | 501,437 | 2,000 | ||||||||||||||
Stock Issued During Period, Value, Issued for Services | $ | $ 501 | $ 2 | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 115,385 | |||||||||||||||
Stock Issued During Period, Value, Conversion of Convertible Securities | $ | $ 187 | |||||||||||||||
Stock Issued During Period, Shares, Stock Splits | 793 | |||||||||||||||
Convertible Debt Agreement [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Stock Issued During Period, Value, Conversion of Convertible Securities | $ | $ 187,100 | |||||||||||||||
Offering Issuance [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Common stock, shares issued | 4,444,445 | |||||||||||||||
Sale of Stock, Price Per Share | $ / shares | $ 9 | |||||||||||||||
Proceeds from Issuance of Private Placement | $ | $ 37,050,000 | |||||||||||||||
Employee Issuance [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Common stock, shares issued | 236,000 | |||||||||||||||
Common Stock, Value, Issued | $ | $ 1,900,000 | |||||||||||||||
Employee Issuance Two [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Common stock, shares issued | 222,249 | |||||||||||||||
Common Stock, Value, Issued | $ | $ 546 | |||||||||||||||
Before Increase [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Employee Stock Ownership Plan (ESOP), Number of Allocated Shares | 300,000 | |||||||||||||||
After Increase [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Employee Stock Ownership Plan (ESOP), Number of Allocated Shares | 1,500,000 | |||||||||||||||
Series A Preferred | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Preferred Stock, Shares Authorized | 2,000,000 | 1,000,000 | ||||||||||||||
Preferred Stock, Par or Stated Value Per Share | $ / shares | $ 0.001 | |||||||||||||||
Preferred Stock, Participation Rights | Under the Certificate of Designation, holders of Series A Preferred Stock will be entitled to quarterly dividends on 2% of our earnings before interest, taxes and amortization. The dividends are payable in cash or common stock. The holders will also have a liquidation preference on the state value of $0.02 per share plus any accumulated but unpaid dividends. The holders are further entitled to have us redeem their Series A Preferred Stock for three shares of common stock in the event of a change of control and they are entitled to vote together with the holders of our common stock on all matters submitted to shareholders at a rate of forty-five (45) votes for each share held. | |||||||||||||||
Stock Issued During Period, Shares, Issued for Services | 750,000 | |||||||||||||||
Net Asset Value Per Share | $ / shares | $ 0.02 | |||||||||||||||
Increase Authorized Common Stock [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Preferred Stock, Shares Authorized | 35,000,000 | |||||||||||||||
Series B Preferred [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Preferred Stock, Shares Authorized | 100,000 | |||||||||||||||
Preferred Stock, Par or Stated Value Per Share | $ / shares | $ 0.001 |
STOCK WARRANTS - Schedule of Wa
STOCK WARRANTS - Schedule of Warrant Summary (Details) - $ / shares | 3 Months Ended | |
Dec. 31, 2020 | Sep. 30, 2020 | |
Stock Warrants | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 1,191,769 | 1,299,065 |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 23.63 | $ 21.78 |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Forfeitures and Expirations | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Forfeitures | ||
[custom:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsCanceledWeightedAverageExercisePrice] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Exercised | 107,296 | |
[custom:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsExercisedWeightedAverageExercisePrice] | $ 1.77 |
13. STOCK WARRANTS (Details Nar
13. STOCK WARRANTS (Details Narrative) - USD ($) | 3 Months Ended | |
Dec. 31, 2020 | Sep. 30, 2020 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 23.63 | $ 21.78 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms | 1 year 6 months | |
Financial Instruments, Owned, Corporate Equities, at Fair Value | $ 11,130,019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 1,191,769 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 18,571 | |
Warrants Not Settleable in Cash, Fair Value Disclosure | $ 993,699 | |
Noncash or Part Noncash Acquisition, Noncash Financial or Equity Instrument Consideration, Warrants Issued | 198,070 | |
$8 Per Share | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 8 | |
Warrants Not Settleable in Cash, Fair Value Disclosure | $ 2,500 | |
$15 Per Share | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 15 | |
Warrants Not Settleable in Cash, Fair Value Disclosure | $ 449,865 | |
$20 per share | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 20 | |
Warrants Not Settleable in Cash, Fair Value Disclosure | $ 125,000 | |
$25 per share | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 25 | |
Warrants Not Settleable in Cash, Fair Value Disclosure | $ 103,000 | |
$35 Per Share | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 35 | |
Warrants Not Settleable in Cash, Fair Value Disclosure | $ 200,000 | |
$40 Per Share | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 40 | |
Warrants Not Settleable in Cash, Fair Value Disclosure | $ 10,000 | |
$50 per share | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 50 | |
Warrants Not Settleable in Cash, Fair Value Disclosure | $ 60,000 | |
$75 per share | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 75 | |
Warrants Not Settleable in Cash, Fair Value Disclosure | $ 38,333 | |
$100 Per Share | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 100 | |
Warrants Not Settleable in Cash, Fair Value Disclosure | $ 5,000 | |
Exercise Of Warrants [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Stock Issued During Period, Shares, New Issues | 31,096 | |
Exercise Of Warrants [Member] | Minimum [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 3.63 | |
Exercise Of Warrants [Member] | Maximum [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 8 | |
Cashless Exercise One [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Stock Issued During Period, Shares, New Issues | 73,906 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.83 | |
Warrant exercised to purchase shares | 76,200 |
STOCK OPTIONS - Schedule of Opt
STOCK OPTIONS - Schedule of Option Summary (Details) - $ / shares | 3 Months Ended | |
Dec. 31, 2020 | Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 548,057 | 277,948 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 7.66 | $ 6.34 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 291,500 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 8.68 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | 11,008 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price | $ 7.93 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 10,383 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price |
STOCK OPTIONS - Fair Value Ass
STOCK OPTIONS - Fair Value Assumptions 2020 (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Minimum | 18.00% | 152.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Maximum | 22.00% | 173.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 3 years | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Weighted Average Expected Dividend | $ 0 | $ 0 |
Expected Volatility Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 167.00% | 124.00% |
Expected Volatility Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 172.00% | 144.00% |
STOCK OPTIONS - Fair Value A_2
STOCK OPTIONS - Fair Value Assumptions 2019 (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Minimum | 18.00% | 152.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Maximum | 22.00% | 173.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 3 years | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Weighted Average Expected Dividend | $ 0 | $ 0 |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 3 years | |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 5 years | |
Expected Volatility Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 167.00% | 124.00% |
Expected Volatility Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 172.00% | 144.00% |
14. STOCK OPTIONS (Details Narr
14. STOCK OPTIONS (Details Narrative) - USD ($) | 3 Months Ended | 15 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2019 | Oct. 07, 2020 | Jan. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common Stock, Shares Subscribed but Unissued | 553,190 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | 388,895 | ||||
Share-based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Remaining Contractual Term | 2 years 7 months 6 days | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 11,800,257 | $ 88,935 | |||
Adjustment to Additional Paid in Capital, Income Tax Effect from Share-based Compensation, Net | 953,126 | ||||
Share-based Payment Arrangement, Noncash Expense | $ 4,350,643 | $ 636,269 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term | 1 year 3 days | ||||
Employees | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 291,500 | 136,697 | |||
Compensation Expense, Excluding Cost of Good and Service Sold | $ 385,883 | $ 478,022 | |||
Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Payment Arrangement, Noncash Expense | $ 1,040,030 | ||||
Before Increase [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Employee Stock Ownership Plan (ESOP), Number of Allocated Shares | 300,000 | ||||
After Increase [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Employee Stock Ownership Plan (ESOP), Number of Allocated Shares | 1,500,000 | ||||
Minimum Market Price | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Per Share Weighted Average Price of Shares Purchased | $ 8.07 | $ 4.50 | $ 4.50 | ||
Maximum Market Price | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Per Share Weighted Average Price of Shares Purchased | $ 12.48 | $ 8.50 | $ 8.50 |
15. COMMITMENTS AND CONTINGEN_2
15. COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | ||||||
Jun. 06, 2020 | Oct. 17, 2017 | Dec. 31, 2020 | Dec. 09, 2020 | Sep. 30, 2020 | Aug. 31, 2020 | Jan. 31, 2020 | May 15, 2018 | |
Acquired Indefinite-lived Intangible Assets [Line Items] | ||||||||
Common Stock, Value, Issued | $ 24,071 | $ 21,183,351 | $ 17,391 | $ 250,000 | $ 445,000 | |||
Grid Fabric Additional Shares Issuable [Member] | ||||||||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||||||||
Common Stock, Value, Issued | $ 750,000 | |||||||
Utah Corporate Office | ||||||||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||||||||
Operating Leases, Rent Expense | 2,300 | |||||||
San Diego Office | ||||||||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||||||||
Operating Leases, Rent Expense | 4,057 | |||||||
Lessee, Finance Lease, Term of Contract | 37 months | |||||||
Operating Leases of Lessee, Contingent Rentals, Basis Spread on Variable Rate | 3.00% | |||||||
Las Vegas Office | ||||||||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||||||||
Operating Leases, Rent Expense | $ 1,575 | |||||||
P 2 K Labs [Member] | ||||||||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||||||||
Operating Leases, Rent Expense | $ 1,801 | |||||||
A T L Member [Member] | ||||||||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||||||||
Operating Leases, Rent Expense | $ 52,958 |
MAJOR CUSTOMERS AND VENDORS - C
MAJOR CUSTOMERS AND VENDORS - Customers (Details) | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Customer A | ||
Policyholder Account Balance [Line Items] | ||
Concentration Risk, Percentage | 3770.00% | 91.20% |
Customer B | ||
Policyholder Account Balance [Line Items] | ||
Concentration Risk, Percentage | 1030.00% |
MAJOR CUSTOMERS AND VENDORS - S
MAJOR CUSTOMERS AND VENDORS - Suppliers (Details) | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Vendor A [Member] | ||
Policyholder Account Balance [Line Items] | ||
Concentration Risk, Percentage | 5780.00% | 93.00% |
Vendor B [Member] | ||
Policyholder Account Balance [Line Items] | ||
Concentration Risk, Percentage | 1630.00% |
SEGMENT REPORTING - Segmnent Re
SEGMENT REPORTING - Segmnent Reporting Assets (Details) - USD ($) | 3 Months Ended | 15 Months Ended | |||||
Dec. 31, 2020 | Dec. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2019 | Sep. 30, 2020 | Aug. 31, 2020 | Jan. 31, 2020 | |
Segment Reporting Information [Line Items] | |||||||
Revenues | $ 2,257,570 | $ 976,824 | $ 976,824 | ||||
Cost of revenues | 1,332,890 | 882,721 | |||||
Gross profit | 924,680 | 94,103 | |||||
Operating expenses | 7,094,778 | 3,085,564 | |||||
Income/(loss) from operations | (6,170,098) | (2,991,461) | |||||
Depreciation and amortization | 1,078,429 | $ 587,490 | $ 626,777 | ||||
Goodwill | 20,108,887 | $ 5,903,641 | $ 26,395 | $ 957,388 | |||
Total Assets | 78,172,736 | $ 22,340,063 | |||||
Energy [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | $ 1,224,622 | ||||||
Cost of revenues | 1,074,495 | ||||||
Gross profit | 150,127 | ||||||
Operating expenses | 6,779,393 | ||||||
Income/(loss) from operations | (6,629,266) | ||||||
Capital expenditures | 15,175 | ||||||
Depreciation and amortization | $ 717,677 | ||||||
Accounts Receivable | 1,292,571 | ||||||
Goodwill | 4,926,254 | ||||||
Total Assets | 43,917,930 | ||||||
Digital Agency [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 381,326 | ||||||
Cost of revenues | 89,349 | ||||||
Gross profit | 291,976 | ||||||
Operating expenses | 287,562 | ||||||
Income/(loss) from operations | 4,415 | ||||||
Capital expenditures | 3,907 | ||||||
Depreciation and amortization | 76,408 | ||||||
Accounts Receivable | 245,780 | ||||||
Goodwill | 977,388 | ||||||
Total Assets | 2,295,658 | ||||||
Digital Currency Mining [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 733,410 | ||||||
Cost of revenues | 169,046 | ||||||
Gross profit | 564,364 | ||||||
Operating expenses | 109,611 | ||||||
Income/(loss) from operations | 454,753 | ||||||
Capital expenditures | |||||||
Depreciation and amortization | 284,344 | ||||||
Accounts Receivable | 86,117 | ||||||
Goodwill | 14,205,245 | ||||||
Total Assets | 31,959,148 | ||||||
Inter Segment [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | (81,788) | ||||||
Cost of revenues | |||||||
Gross profit | (81,788) | ||||||
Operating expenses | (81,788) | ||||||
Income/(loss) from operations | |||||||
Capital expenditures | |||||||
Depreciation and amortization | |||||||
Consolidated [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 2,257,570 | ||||||
Cost of revenues | 1,332,890 | ||||||
Gross profit | 924,680 | ||||||
Operating expenses | 7,094,778 | ||||||
Income/(loss) from operations | (6,170,098) | ||||||
Capital expenditures | 19,082 | ||||||
Depreciation and amortization | 1,078,429 | ||||||
Accounts Receivable | 1,624,648 | ||||||
Goodwill | 20,108,887 | ||||||
Total Assets | $ 78,172,736 |
18. SUBSEQUENT EVENTS (Details
18. SUBSEQUENT EVENTS (Details Narrative) - USD ($) | Feb. 09, 2021 | Jan. 15, 2021 | Jan. 11, 2021 | Jan. 08, 2021 | Jan. 07, 2021 | Jan. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 10,383 | |||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 23.63 | $ 21.78 | ||||||
Employee Option [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 26,000 | |||||||
Sale of Stock, Consideration Received Per Transaction | $ 150,262 | |||||||
Employee Option [Member] | Minimum [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Exercise Price | $ 4.65 | |||||||
Employee Option [Member] | Maximum [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Exercise Price | $ 10 | |||||||
Warrant Exercises [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Sale of Stock, Consideration Received Per Transaction | $ 150,000 | |||||||
Stock Issued During Period, Shares, New Issues | 10,000 | |||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 15 | |||||||
Warrant Exercises Two [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Sale of Stock, Consideration Received Per Transaction | $ 2,500,000 | |||||||
Stock Issued During Period, Shares, New Issues | 125,000 | |||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 20 | |||||||
Warrant Exercises Three [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Sale of Stock, Consideration Received Per Transaction | $ 1,008 | |||||||
Stock Issued During Period, Shares, New Issues | 300 | |||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 3.36 | |||||||
Employee Option Two [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 423 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Exercise Price | $ 24.40 | |||||||
Sale of Stock, Consideration Received Per Transaction | $ 10,321 | |||||||
Cashless Exercise Two [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Stock Issued During Period, Shares, New Issues | 268 | |||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 3.36 | |||||||
Warrant exercised to purchase shares | 300 |
Uncategorized Items - clsk10q.h
Label | Element | Value |
Preferred Stock [Member] | ||
Exercise of options and warrants, shares | us-gaap_StockIssuedDuringPeriodValueConversionOfUnits |