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10. LOANS
 6 Months Ended
Mar. 31, 2024
Debt Disclosure [Abstract]  
LOANS LOANS

 

As of March 31, 2024, the Company had a gross balance outstanding of $12,900, netted against discount on loans payable of $124. Total principal payments on loans during the six months ended March 31, 2024 were $3,467.

The following is a schedule of the Company's loan balance, net of debt discount and future loan payments, as of March 31, 2024:

 

 

 

 

 

 

 

March 31, 2024

 

 

September 30, 2023

 

($ in thousands)

 

Maturity Date

 

Rate

 

Debt Balance, Net

 

 

Debt Balance, Net

 

Master Equipment Financing Arrangement

 

Apr-25

 

13.80%

 

$

8,496

 

 

$

11,603

 

Mortgage - Corporate Facility

 

Apr-25

 

10.00%

 

 

1,965

 

 

 

1,950

 

Marquee Funding Partners

 

Jul-26 - Feb-27

 

13.00%

 

 

1,503

 

 

 

1,725

 

Auto & Equipment Loans

 

Sep-24 - Dec-29

 

0.0-11.3%

 

 

812

 

 

 

625

 

Total Loans Outstanding

 

 

 

 

 

$

12,776

 

 

$

15,903

 

Less: current portion of long-term loans

 

 

 

 

 

 

(7,686

)

 

 

(6,992

)

Long-term loans, excluding current portion

 

 

 

 

 

$

5,090

 

 

$

8,911

 

 

 

($ in thousands)

 

5-Year Loan Maturities

 

Outstanding Loan

 

FY 2024

 

 

FY 2025

 

 

FY 2026

 

 

FY 2027

 

 

FY 2028

 

 

Thereafter

 

 

Total

 

Master Equipment Financing Arrangement

 

$

3,364

 

 

$

5,221

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

8,585

 

Mortgage - Corporate Facility

 

 

—

 

 

 

2,000

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,000

 

Marquee Funding Partners

 

 

236

 

 

 

521

 

 

 

592

 

 

 

154

 

 

 

—

 

 

 

—

 

 

 

1,503

 

Auto & Equipment Loans

 

 

107

 

 

 

226

 

 

 

218

 

 

 

128

 

 

 

97

 

 

 

36

 

 

 

812

 

Total principal amount of loan payments by fiscal year

 

$

3,707

 

 

$

7,968

 

 

$

810

 

 

$

282

 

 

$

97

 

 

$

36

 

 

$

12,900

 

Unamortized deferred financing costs and discounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(124

)

Total loan book value as of March 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

12,776

 

 

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 2023 that is currently utilized as the Company's Corporate Office (see Note 7). The loan agreement has a two year term, 10% interest rate and monthly interest only payments until maturity.

 

Master Equipment Financing Agreement

On April 22, 2022, the Company entered into a Master Equipment Financing Agreement (the "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 our College Park, GA and Norcross, GA sites.

Marquee Funding Partners

In connection with the acquisition of a bitcoin mining facility from WAHA Technologies Inc. in August 2022, certain assets were encumbered with mortgages which the Company assumed. The mortgages assumed have a current unpaid principal balance of $1,503, remaining payment terms ranging from 28-35 months and annual interest of 13%.

Auto and Equipment Loans

The Company has entered into various financing arrangements to purchase vehicles and non-miner equipment with combined principal outstanding at March 31, 2024 of $812. The loans vary in terms from 12-72 months with annual interest rates ranging from 0.00% - 11.30%. The loans are secured with the purchased vehicles and equipment. During the six months ended March 31, 2024, the Company entered into seven separate agreements for the purchase of machinery, autos and equipment with a combined principal of $287, with terms ranging from 12-72 months and interest rates ranging from 0.00% to 11.3%.