Aug 04, 2020 (Baystreet.ca via COMTEX) -- The pandemic has been devastating to lives around the world, businesses, and the financial well-being of millions of people. Economies, such as the U.S. just saw GDP contract at a record 32.9% in the second quarter of 2020. The World Bank just forecast a 2020 global GDP contraction of 5.2%. The International Monetary Fund is forecasting a 4.9% contraction. However, even with slowing growth, some companies have still managed to thrive. In fact, some of the top ones include CleanSpark, Inc. /zigman2/quotes/200030751/composite CLSK -9.70% , Moderna Inc. /zigman2/quotes/205619834/composite MRNA -0.78% , Inovio Pharmaceuticals Inc. /zigman2/quotes/202993817/composite INO -4.01% , BioNTech SE /zigman2/quotes/214419716/composite BNTX +1.41% , and Novavax Inc. /zigman2/quotes/202614340/composite NVAX +1.34% .
CleanSpark, Inc. /zigman2/quotes/200030751/composite CLSK -9.70% BREAKING NEWS: CleanSpark, Inc., 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.