SALT LAKE CITY, Aug. 4, 2020 /PRNewswire/ -- CleanSpark,
Inc. (Nasdaq: CLSK), a diversified software and services company,
is pleased to update its shareholders and comment on the Company's
financial results presented in its most recent Form 10-Q. The
Company recommends that readers also review the Company's 10-Q in
its entirety, a free copy of which is available to all interested
parties on the Company's website or on www.sec.gov.
Dear Fellow Shareholders,
As the planet begins to emerge from the catastrophic effects of
the global pandemic, we consider ourselves blessed to have had the
ability to continue the operations of our business largely
unscathed. The massive disruption of our daily lives and the tragic
health issues and loss of life around the world are clearly
unprecedented. According to recent reports, the US
economy contracted a record 32.9% during the second quarter of
2020. In spite of all of this uncertainty, CleanSpark continues to
execute on its strategy and is pleased to report our eighth
consecutive record-breaking quarter, significantly increasing year
over year revenues. We remain optimistic that the Company will
continue to see record-setting growth across our software and
services segments.
Our sales in fiscal 2020 are again led by our custom electric
switchgear hardware with more than $6.4
Million in products delivered during the nine months ending
June 30, 2020. We continue to
see a sizable percentage of repeat customers in this segment and we
anticipate this trend will continue. As a result of our strong
growth we have increased our targeted revenue from $7.0 to $7.5
million in delivered custom switchgear sales prior to the
end of our 2020 fiscal year.
The Company's increased focus on its mPulse software and
controls platform, and mVSO, (microgrid Value Stream Optimizer) has
continued to pay dividends with more than $1.0 million in related sales and nearly
$1.0 million in additional contracted
backlog coupled with a current proposal pipeline of approximately
$10.0 million. During the nine months
ended June 30, 2020, we delivered in
excess of $1.0 million in software,
energy storage and associated hardware. As a result of our strong
growth we have increased our targeted revenue from $1.0 million to $1.3
million in delivered revenue related to this category prior
to the end of our 2020 fiscal year.
The acquisition of p2klabs has enabled CleanSpark to
accelerate the development and deployment of new features to its
software platforms and expanded the overall sales and marketing
capabilities. p2klabs generates high-margin service revenue and has
contributed nearly $600,000 in
revenues between February 1, 2020 and
June 30, 2020. Since closing
the acquisition, we have increased our investment in marketing and
staff for the p2klabs business and expect the quarterly revenue
contribution to increase significantly over the coming quarters. We
continue to target $2.0 million in
p2klabs revenue prior to the first anniversary of the
acquisition, January 31, 2021.
We are sincerely grateful for the continued support from our
shareholders. The most recent count exceeds 17,000 investors,
including more than 10,000 shareholders on the Robinhood trading
platform alone. We believe this significant increase
indicates that the incoming generation of investors understand the
magnitude CleanSpark's disruptive approach brings to the rapidly
evolving global energy markets. We continue to put our
efforts towards, increasing shareholder value, achieving
profitability, and improving our margin profile through increased
software and service revenues.
Again, we appreciate your continued interest in, and passionate
support of CleanSpark.
Heartfelt thanks from your fellow shareholders,
Zach and Matt
Zachary Bradford, CEO and S.
Matthew Schultz, Chairman
Three months ended June 30,
2020 US GAAP Financial and Operating Highlights:
All amounts below are presented in accordance with accounting
principles generally accepted in the
United States of America ("US GAAP") unless otherwise
indicated.
- Three-months ended June 30, 2020
Revenue of $3,438,674, up 181% from
$1,222,736 in 2019.
- Three-months ended June 30, 2020
Gross profit increased 152% to $544,735, up from $216,592 in 2019.
- Three-months ended June 30, 2020
Net loss per share improved by $0.13
per share to $(0.77) from
$(0.90) in 2019.
Nine months ended June 30, 2020
US GAAP Financial and Operating Highlights:
All amounts below are presented in accordance with accounting
principles generally accepted in the
United States of America ("US GAAP") unless otherwise
indicated.
- Nine-months ended June 30, 2020
Revenue of $8,073,781, up 283% from
$2,109,542 in 2019.
- Nine-months ended June 30, 2020
Gross profit increased 246% to $1,342,875, up from $388,054 in 2019.
- Nine-months ended June 30, 2020
Net loss per share improved by $1.13
per share to $(2.32) from
$(3.45) in 2019.
Certain Non-U.S. GAAP Financial measures:
The Company assesses its results of operations using certain
non-U.S. GAAP financial measures, in addition to U.S. GAAP
financial measures. The Company believes these non-U.S. GAAP
financial measures provide useful information to investors and
others in understanding and evaluating its operating performance in
the same manner as management does.
The non-U.S. GAAP financial measures should be considered in
addition to, and not as a substitute for or superior to, any
financial measures prepared in accordance with U.S. GAAP. The
Company's non-U.S. GAAP financial measures may be defined
differently from time to time and may be defined differently than
similar terms used by other companies, and accordingly, care should
be exercised in understanding how the Company defines its non-U.S.
GAAP financial measures.
Reconciliation of
non-GAAP Adjusted EBITDA (after elimination of stock
based and other non-cash expenses)
|
|
|
|
For the Three
months Ended
|
|
|
June 30,
2020
|
|
June 30,
2019
|
Net loss (US
GAAP)
|
$
|
(8,551,301)
|
$
|
(3,971,911)
|
Less: Depreciation,
Amortization and other non-cash items:
|
|
|
|
|
Depreciation and
amortization
|
|
703,367
|
|
618,130
|
Software
amortization
|
|
41,877
|
|
344,871
|
Stock based
compensation
|
|
172,931
|
|
432,971
|
Non-cash interest charges, amortization
of debt discounts and other
|
|
7,066,496
|
|
1,495,213
|
Non-cash amortization
of right of use assets
|
|
11,274
|
|
-
|
Unrealized gains on
investments
|
|
(638,794)
|
|
-
|
Total Depreciation,
Amortization and other non-cash items:
|
|
7,357,151
|
|
2,891,185
|
|
|
|
|
|
Non-GAAP Adjusted
EBITDA (after elimination of stock based and other non-cash
expenses)
|
$
|
(1,194,150)
|
$
|
(1,080,726)
|
|
|
|
|
|
For the Nine
months Ended
|
|
|
June 30,
2020
|
|
June 30,
2019
|
Net loss (US
GAAP)
|
$
|
(16,282,653)
|
$
|
(14,020,002)
|
Less: Depreciation,
Amortization and other non-cash items:
|
|
|
|
|
Depreciation and
amortization
|
|
2,004,731
|
|
1,275,249
|
Software
amortization
|
|
121,582
|
|
1,034,612
|
Stock based
compensation
|
|
1,171,632
|
|
1,716,753
|
Non-cash interest
charges, amortization of debt discounts and other
|
|
10,518,094
|
|
7,196,287
|
Non-cash amortization
of right of use assets
|
|
33,000
|
|
-
|
Unrealized gains on
investments
|
|
(1,622,553)
|
|
-
|
Loss on settlement of
debts
|
|
-
|
|
19,425
|
Total Depreciation,
Amortization and other non-cash items:
|
|
12,226,486
|
|
11,222,901
|
|
|
|
|
|
Non-GAAP Adjusted
EBITDA (after elimination of stock based and other non-cash
expenses)
|
$
|
(4,056,167)
|
$
|
(2,797,101)
|
Parties interested in learning more about CleanSpark's services
are encouraged to inquire by contacting the Company directly at
info@cleanspark.com or visiting the Company's website at
https://www.cleanspark.com.
Investors are encouraged to contact the Company
at ir@cleanspark.com, or visiting the Company's website at
https://ir.cleanspark.com/ where recent presentations and case
studies are available to view.
About CleanSpark:
CleanSpark is a software and services company which offers
software and intelligent controls for microgrid and distributed
energy resource management systems and innovative strategy and
design services. The Company provides advanced energy
software and control technology that allows energy users to obtain
resiliency and economic optimization. Our software is uniquely
capable of enabling a microgrid to be scaled to the user's specific
needs and can be widely implemented across commercial, industrial,
military, agricultural and municipal deployment. Our product and
services consist of intelligent energy controls, microgrid modeling
software, and innovation consulting services in design, technology,
and business process methodologies to help transform and grow
businesses.
Forward-Looking Statements:
CleanSpark cautions you that statements in this press release
that are not a description of historical facts are forward-looking
statements. These statements are based on CleanSpark's current
beliefs and expectations. The inclusion of forward-looking
statements should not be regarded as a representation by CleanSpark
that any of our plans will be achieved. Actual results may
differ from those set forth in this press release due to the risk
and uncertainties inherent in our business, including, without
limitation: the fitness of the product for a particular application
or market, the expectations of future growth may not be realized,
timing of deliveries of orders under contract, the successful
integration of p2klabs, demand for our software products, the
effect of COVID-19 on the economy and markets, generally, and other
risks described in our prior press releases and in our filings with
the Securities and Exchange Commission (SEC), including under the
heading "Risk Factors" in our Annual Report on Form 10-K and any
subsequent filings with the SEC. You are cautioned not to place
undue reliance on these forward-looking statements, which speak
only as of the date hereof, and we undertake no obligation to
revise or update this press release to reflect events or
circumstances after the date hereof. All forward-looking statements
are qualified in their entirety by this cautionary statement, which
is made under the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995.
Contact - Investor Relations:
CleanSpark Inc.
Investor Relations
(801)-244-4405
View original content to download
multimedia:http://www.prnewswire.com/news-releases/cleanspark-announces-quarterly-results-and-283-increase-in-revenues-in-a-statement-to-shareholders-301105626.html
SOURCE CleanSpark, Inc.