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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%.