XML 31 R18.htm IDEA: XBRL DOCUMENT
v3.23.3

10. LOANS | 12 Months Ended
--- | ---
Sep. 30, 2023
Debt Disclosure [Abstract] |
LOAN | 10. LOANS As of September 30, 2023, the Company had a gross balance outstanding of $16,080, netted against discount on the loans payable of $177. Total principal payments on loans during the years ended September 30, 2023 and 2022 was $14,466 and $2,779, respectively. The following table reflects our outstanding loans as of September 30, 2023 and September 30, 2022:
|  |  |  |  |  | September 30, 2023 |  |  | September 30, 2022 |
($ in thousands) |  | Maturity Date |  | Rate |  | Debt Balance, Net |  |  | Debt Balance, Net |
Master Equipment Financing Arrangement |  | Apr-25 |  | 13.80% |  | $ | 11,603 |  |  | $ | 17,073 |
Mortgage - Corporate Facility |  | Apr-25 |  | 10.00% |  |  | 1,950 |  |  |  | — |
SPRE Commercial Group, Inc. |  | Aug-23 |  | 12.00% |  |  | — |  |  |  | 1,807 |
Marquee Funding Partners |  | Jul-26 - Feb-27 |  | 13.00% |  |  | 1,725 |  |  |  | 2,127 |
Auto & Equipment Loans |  | Oct-26 - Jun -29 |  | 0.99-9.60% |  |  | 625 |  |  |  | 212 |
Total Loans Outstanding |  |  |  |  |  | $ | 15,903 |  |  | $ | 21,219 |
Less: current portion of long-term loans |  |  |  |  |  |  | (6,992 | ) |  |  | (7,786 | )
Long-term loans, excluding current portion |  |  |  |  |  | $ | 8,911 |  |  | $ | 13,433 |
The following table reflects the principal amount of loan maturities due over the next five years and beyond as of September 30, 2023:
($ in thousands) |  | 5-Year Loan Maturities |
Outstanding Loan |  | FY 2024 |  |  | FY 2025 |  |  | FY 2026 |  |  | FY 2027 |  |  | FY 2028 |  |  | Thereafter |  |  | Total |
Master Equipment Financing Arrangement |  | $ | 6,509 |  |  | $ | 5,221 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 11,730 |
Mortgage - Corporate Facility |  |  | — |  |  |  | 2,000 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2,000 |
Marquee Funding Partners |  |  | 458 |  |  |  | 521 |  |  |  | 592 |  |  |  | 154 |  |  |  | — |  |  |  | — |  |  |  | 1,725 |
Auto & Equipment Loans |  |  | 152 |  |  |  | 159 |  |  |  | 147 |  |  |  | 83 |  |  |  | 69 |  |  |  | 15 |  |  |  | 625 |
Total principal amount of loan payments by fiscal year |  | $ | 7,119 |  |  | $ | 7,901 |  |  | $ | 739 |  |  | $ | 237 |  |  | $ | 69 |  |  | $ | 15 |  |  | $ | 16,080 |
Unamortized deferred financing costs and discounts |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (177 | )
Total loan book value as of September 30, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 15,903 |
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. (the "Lender"). The Master Equipment Financing Agreement provided for up to $35,000 of borrowings to finance the Company’s acquisition of blockchain computing equipment. The Company received a loan of $20,000 at closing, with the remaining $15,000 fundable upon the Company's request, if requested no later than December 31, 2022, subject to certain customary conditions. The Company did not request the funding and agreed with the Lender that the related 1% loan commitment fee for the unused portion would be refunded to the Company, which was received in December 2022. The borrowings under the Master Equipment Financing Agreement are collateralized by 3,336 S19j Pro miners, which are located at the Company's College Park, GA and Norcross, GA sites. The Company recorded an original loan discount of approximately $379, of which $150 was refunded and $56 and $46 was amortized and recorded to interest expense during the years ended September 30, 2023 and 2022. Mortgage - Corporate Office On May 10, 2023, HQLLC completed a refinancing transaction whereby it borrowed a net $1,937 against the equity of the real property purchased in April that is intended for the future Corporate Office (see Note 7 - Property and Equipment). The loan agreement has a two-year term, 10% interest rate and monthly interest only payments until maturity. 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 $1,725, remaining payment terms ranging from 35-42 months and annual interest of 13%. SPRE Commercial Group, Inc. In connection with the acquisition of WAHA, the Company entered into a financing arrangement with the seller. The loan had a term of 12 months with monthly payments of $174 and a stated interest rate of 12%. The loan matured in fiscal year 2023 and no amount is outstanding as of September 30, 2023. Auto Loans The Company has entered into various financing arrangements to purchase vehicles and non-miner equipment with combined principal amount of $625 as of September 30, 2023. The loans vary in terms from 36-72 months with annual interest rates ranging from 0.99% - 9.60%. The loans are secured with the purchased vehicles and equipment. During the year ended September 30, 2023, the Company entered into five separate agreements for the purchase of machinery and equipment and mining equipment with a combined principal of $493, with terms ranging from 36-72 months and interest rates ranging from 0.99%-9.60%.

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://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(c)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 470 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//470/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (i) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1E -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I + Details
Name: | us-gaap_DebtDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration