Page 1

CleanSpark , Inc. Reports Quarterly Financial Results for the Three - Months Ended December 31 , 2020 Quarterly revenue increased 130 % from one year ago quarter and gross margin improved to 41 % SALT LAKE CITY , UT , February 12 , 2021 - CleanSpark , Inc. ( Nasdaq : CLSK ) ( “ the “ Company ” ) , an advanced software and controls technology solutions company , focused on solving modern energy challenges , today reported results for the quarter ended December 31 , 2020 . The Company's form 10 - Q and accompanying unaudited interim financial statements are available at www.sec.gov and the Company website at https://ir.cleanspark.com/sec-filings/ Financial Highlights • CleanSpark more than doubled its comparable quarterly revenues , with quarterly revenue of $ 2.26 million , an increase of 130 % from $ 0.98 million for the prior year . • Gross Margin increased to 41 % to $ 0.92 million compared to 10 % and $ 0.10 million to the prior year . ⚫ Loss from operations increased to $ 6.2 million compared to $ 3 million for the prior year . • Net loss for the three months attributable to common shareholders for the three months ended December 31 , 2020 was $ 7.2 million or $ ( 0.32 ) per basic and diluted earnings per share compared to a loss of $ 1.9 million or $ ( 0.40 ) per basic and diluted earnings share for the same year - ago period , an improvement of $ 0.08 per share . • Adjusted EBITDA , a non - GAAP term , resulted in a non - GAAP net loss attributable to common shareholders for the three months ended December 31 , 2020 of $ 591,975 or $ ( 0.03 ) per basic and diluted earnings per share , compared to a loss of $ 1,765,826 or $ ( 0.37 ) per basic and diluted earnings share for the same year - ago period , an improvement of $ 0.34 per share . • The Company decreased its revenue concentration risk , for the three months ended December 31 , 2020 37 % of its revenues were derived from a single customer as compared to 91 % in the same year - ago period . Financial Summary Revenues The Company recognized $ 2.25 million in revenues during the three - months ended December 31 , 2020 , as compared with $ 0.98 million in revenues for the three - months ended December 31 , 2019 . For the year ended December 31 , 2020 and 2019 our revenue was derived from three business segments : Energy Segment - Consisting of our CleanSpark , LLC , CleanSpark Critical Power Systems , Inc. and GridFabric , LLC lines of business , this segment provides services , equipment and software to the energy industry . The income from our Energy Segment is the result of contracts to sell switchgear equipment , perform engineering and design services , and provide software for distributed energy and microgrid systems . Digital Agency Segment – The Company's wholly owned subsidiary p2klabs , Inc. provides design , software development and other technology- based consulting services .