10. LEASES

9 Months Ended

Jun. 30, 2024

10.

LEASES

In January 2024, the Company ceased usage of its prior corporate headquarters, which was accounted for as an operating lease. As of June 2024, the Company has not sub-leased the location and has impaired the right of use asset in the amount of $396 and has recorded this as "impairment expense - other" on the Condensed Consolidated Statements of Operations and Comprehensive Loss.

In April 2024, the Company entered into a new operating land lease in Dalton, GA for the expansion of a fourth bitcoin mining location, which is located adjacent to one of its current facilities. The lease is for a total of $18 per year for five years, for which the Company recorded a right of use asset and operating lease liability of $122.

In connection with the acquisition of the LN Energy locations (see Note 3 - Acquisitions), the Company assumed four land leases, which are included in the tables below.

The Company's lease costs recognized during the nine months ended June 30, 2024 and 2023 in the unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss consist of the following:


	For the three months ended				For the nine months ended
($ in thousands)	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
Operating lease cost (1)	$	47	$	62	$	140	$	221
Finance lease cost:
Depreciation expense of financed assets	$	27	$	37	$	109	$	156
Interest on lease obligations	$	1	$	20	$	3	$	30

(1) Included in general and administrative expenses

Other lease information is as follows:


	For the nine months ended
($ in thousands)	June 30, 2024		June 30, 2023
Cash paid for amounts included in measurement of lease obligations:
Operating cash outflows from operating leases	$	161	$	240
Operating cash outflows from finance leases	$	3	$	30
Financing cash outflows from finance leases	$	117	$	249


	June 30, 2024			September 30, 2023
Weighted-average remaining lease term - operating leases	7.1 years			4.0 years
Weighted-average remaining lease term - finance leases	0.4 years			2.1 years
Weighted-average discount rate - operating leases		6.80	%		5.40	%
Weighted-average discount rate - finance leases		5.50	%		5.50	%

The following is a schedule of the Company's lease liabilities by contractual maturity as of June 30, 2024:


($ in thousands) Fiscal Year	Operating Leases			Finance Leases
Remainder of 2024	$	103		$	14
2025		296			9
2026		299			—
2027		204			—
2028		142			—
Thereafter		781			—
Gross lease liabilities		1,825			23
Less: imputed interest		(906	)		—
Present value of lease liabilities	$	919		$	23
Less: Current portion of lease liabilities		(198	)		(23	)
Total lease liabilities, net of current portion	$	721		$	—