Item 2. Properties
Item 2. Properties
On August 6, 2021, the Company, through its
wholly owned subsidiary CSRE Properties Norcross, LLC, closed on the purchase of real property located at 5295 Brook Hollow Parkway, Norcross,
Georgia, 30071 (the “Norcross Property”). The total purchase price was $6,550,000 and the seller conveyed fee simple title
by limited warranty deed. The Norcross Property consists of an office building of approximately 86,000 square feet on approximately 7
acres of land. The Norcross Property is utilized by CleanBlok to conduct cryptocurrency mining activities.
On May 20, 2021,
the Company, through its wholly owned subsidiary ATL, closed on the purchase of real property located at 2380
Godby Road, College Park, Georgia, 30349 (the “Godby Road Property”), which it had been
leasing prior to the purchase. The total purchase price was $4,711,799 and the seller conveyed fee simple title by limited warranty deed.
The Godby Road Property consists of an office/warehouse building of approximately 41,387 square feet on approximately 6 acres of land.
The Godby Road Property is utilized by ATL and CleanBlok to conduct cryptocurrency mining activities.
On June 15, 2021, the Company entered into
a lease for warehouse and office space at 2042 Corte Del Nogal, Suite C, Carlsbad, California, 92011. The 5-year lease is for an approximately
12,704 square foot industrial unit and part of a larger 47,744 square foot multi-tenant industrial flex building and requires monthly
base rent payments of $11,307. The leased property is utilized by our energy segment.
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On August 26, 2021, the Company entered into
a lease for office space at 2370 Corporate Circle, Suite 160, Henderson, Nevada, 89074. The 65-month lease is for 4,552 rentable square
feet an initial base rent of $10,925 and increases 3% each year. The Corporate Circle space will be utilized as the CleanSpark corporate
and executive headquarters. Until the Corporate Circle location is move-in ready, we sublease offices located at 8475 S. Eastern Ave.,
Suite 200, Las Vegas, Nevada. We are currently on a year-to-year lease agreement that calls for us to make payments of $1,525 per month.
We also have an office located at 1185 S.
1800 W, Suite 3, Woods Cross Utah 84087. We are currently on a year-to-year lease agreement that calls for us to make payments of $2,300
per month. This property is utilized by corporate employees.
The Company believes its existing facilities and equipment are
in good operating condition and are suitable for the conduct of its business.
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