XML 27 R15.htm IDEA: XBRL DOCUMENT
v3.22.2.2

9. LOANS | 12 Months Ended
--- | ---
Sep. 30, 2022
Debt Disclosure [Abstract] |
LOAN | 9. LOANS The following table reflects our outstanding loans as of September 30, 2022:
|  | Maturity Date |  | Rate |  | Debt Balance, Net |
Master Equipment Financing Arrangement |  | Apr-25 |  | 13.80% |  | $ | 17,073,111 |
SPRE Commercial Group, Inc. |  | Aug-23 |  | 12.00% |  |  | 1,806,558 |
Marquee Funding Partners |  | Jul-26 - Feb-27 |  | 13.00% |  |  | 2,127,027 |
Auto Loans |  | Oct-28 |  | 9.00-9.20% |  |  | 212,421 |
Total Loans Outstanding |  |  |  |  |  | $ | 21,219,117 |
Less: current portion of long-term loans |  |  |  |  |  |  | (7,786,049 | )
Long-term loans, excluding current portion |  |  |  |  |  | $ | 13,433,068 |
The following table reflects the principal amount of loan maturities due over the next five years and beyond as of September 30, 2022:
|  | 5-Year Loan Maturities |
Outstanding Loan |  | FY 2023 |  |  | FY 2024 |  |  | FY 2025 |  |  | FY 2026 |  |  | FY 2027 |  |  | Thereafter |  |  | Total |
Master Equipment Financing Arrangment |  | $ | 5,677,314 |  |  | $ | 6,508,398 |  |  | $ | 5,221,133 |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 17,406,845 |
SPRE Commercial Group, Inc. |  |  | 1,806,558 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 1,806,558 |
Marquee Funding Partners |  |  | 402,179 |  |  |  | 457,693 |  |  |  | 520,869 |  |  |  | 592,766 |  |  |  | 153,520 |  |  |  | - |  |  |  | 2,127,027 |
Auto Loans |  |  | 24,662 |  |  |  | 30,464 |  |  |  | 33,341 |  |  |  | 36,489 |  |  |  | 39,935 |  |  |  | 47,530 |  |  |  | 212,421 |
Total principal amount of loan payments by fiscal year |  | $ | 7,910,713 |  |  | $ | 6,996,555 |  |  | $ | 5,775,343 |  |  | $ | 629,255 |  |  | $ | 193,455 |  |  | $ | 47,530 |  |  | $ | 21,552,851 |
Unamortized deferred financing costs and discounts on Master Equipment Financing Arrangement |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (333,734 | )
Total loan book value as of September 30, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 21,219,117 |
Description of Outstanding Loans Master Equipment Financing Agreement On April 22, 2022, the Company entered into a Master Equipment Financing Agreement with Trinity Capital Inc., as the Lender (the “Financing Agreement”). The Financing Agreement provides for up to $35 million of borrowings to finance the Company’s acquisition of blockchain computing equipment. The Company received a loan of $20 million at closing, with the remaining $15 million fundable upon the Company's request, if requested no later than December 31, 2022, subject to certain customary conditions. The loan draws have a term of 36 months from issuance with a monthly rate factor of at least 0.032198 payable monthly on the total cost of the equipment purchased with such borrowing. The Financing Agreement contains standard financial reporting requirements and certain other affirmative obligations, failure of which to comply with could result in an event of default under the Financing Agreement. In such an event, the Lender could exercise certain remedies including, but not limited to, declaring that all amounts outstanding under the Financing Agreement, together with accrued interest, be declared immediately due and payable. The Company received funding of $20 million at close, which included closing costs of $701,624 and security deposit of $643,960. The loan is collateralized with 3,336 S19j Pro miners and carries and effective interest rate of 13.80%. The Company recorded a loan discount of approximately $379,000, of which $46,000 was amortized and recorded to interest expense during the year ended September 30, 2022. SPRE Commercial Group, Inc. In connection with the acquisition of WAHA, the Company entered into a financing arrangement with the seller. The loan has a term of 12 months with monthly payments of $173,651 and a stated interest rate of 12%. Marquee Funding Partners In connection with the acquisition of WAHA, certain assets were encumbered with mortgages which the Company assumed. The mortgages assumed have a combined balance of $2,158,253 and remaining payment terms ranging from 47-54 months and annual interest of 13%. Auto Loans In September 2022, the Company purchased vehicles through financing arrangements with combined principal amount of $212,421. The loans are for a term of 72 months with annual interest of 9%. The loans are secured with the purchased vehicles. Paycheck Protection Program Loan 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 (the “PPP Loan”). The Company applied for and received loan forgiveness from the SBA on March 23, 2021. The entire principal balance and interest charges were forgiven. The gain on loan forgiveness of $531,169 is included in other income in the consolidated statements of operations and comprehensive loss for the year ended September 30, 2021.

X
- References No definition available. + Details
Name: | us-gaap_DebtDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI https://asc.fasb.org/topic&trid=2208564 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (h) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(c)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (g) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1E -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (i) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 + Details
Name: | us-gaap_DebtDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration