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NOTES PAYABLE | 6 Months Ended
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Jun. 30, 2023
Debt Disclosure [Abstract] |
NOTES PAYABLE | 18. NOTES PAYABLE Notes payable at June 30, 2023 and December 31, 2022, were comprised of the following:
Schedule of notes payable |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Collateral |  | Guarantors |  | Interest rate |  | Due date |  | June 30, 2023 |  |  | December 31, 2022 |
AGREE secured construction loans |  | AGREE hotels |  | - |  | 7.0% |  | January 1, 2025 |  | $ | 67,359,000 |  |  | $ | 62,395,000 |
Circle 8 Crane Services, LLC (“Circle 8”) revolving credit facility |  | Circle 8 cranes |  | - |  | 8.4% |  | December 16, 2025 |  |  | 16,616,000 |  |  |  | 14,724,000 |
8.5% secured promissory notes |  | 19,389 Antminers, BNI Montana assets, Circle 8 membership interests, Florida property, Michigan property, aircraft |  | Ault & Company, Ault Lending, Milton C. Ault, III |  | 8.5% |  | May 7, 2024 |  |  | 16,001,000 |  |  |  | 17,389,000 |
16% senior secured promissory notes* |  | 12,000 Antminers, Ault Lending securities, |  | Ault & Company, Sentinum, Ault Lending, Milton C. Ault, III |  | 16.0% |  | September 15, 2023 |  |  | 12,034,000 |  |  |  | 17,456,000 |
Circle 8 equipment financing notes |  | Circle 8 equipment |  | - |  | 7.2% |  | November 16, 2026 |  |  | 6,715,000 |  |  |  | 10,677,000 |
3% secured promissory notes** |  | Certain Ault Lending securities |  | - |  | 3.0% |  | May 18, 2023 |  |  | 5,455,000 |  |  |  | 5,672,000 |
8% demand loans |  | - |  | - |  | 8.0% |  | Upon demand |  |  | 4,500,000 |  |  |  | - |
Short-term bank credit facilities |  | - |  | - |  | 5.6% |  | Renews monthly |  |  | 2,129,000 |  |  |  | 1,702,000 |
XBTO note payable |  | 2,482 Antminers |  | - |  | 12.5% |  | December 30, 2023 |  |  | 1,645,000 |  |  |  | 2,749,000 |
Note payable, related party |  | - |  | - |  | 9.5% |  | On demand |  |  | 750,000 |  |  |  | - |
10% secured promissory notes |  | - |  | - |  | 10.0% |  | August 10, 2023 |  |  | - |  |  |  | 8,789,000 |
SMC line of credit |  | SMC assets |  | - |  | 8.0% |  | October 14, 2025 |  |  | - |  |  |  | 1,761,000 |
Other*** |  | - |  | Ault & Company |  |  |  |  |  |  | 4,595,000 |  |  |  | 858,000 |
Total notes payable |  | - |  | - |  |  |  |  |  | $ | 137,799,000 |  |  | $ | 144,172,000 |
Less: |  | - |  | - |  |  |  |  |  |  |  |  |  |  |  |
Unamortized debt discounts |  | - |  | - |  |  |  |  |  |  | (3,804,000 | ) |  |  | (13,087,000 | )
Total notes payable, net |  | - |  | - |  |  |  |  |  | $ | 133,995,000 |  |  | $ | 131,085,000 |
Less: current portion |  | - |  | - |  |  |  |  |  |  | (46,434,000 | ) |  |  | (39,621,000 | )
Notes payable – long-term portion |  | - |  | - |  |  |  |  |  | $ | 87,561,000 |  |  | $ | 91,464,000 |
| * | Defaults on payment terms in July 2023. Payments subsequent to June 30, 2023 of $10.3 million. Currently the loan maturity date was extended to September 15, 2023 and automatically extends for an additional 30 days for a $0.25 million extension fee for each extension period, with an interest rate of 16% and principal amount outstanding of $2.5 million.
| ** | Defaults on payment term as of June 30, 2023. Paid in July 2023.
| *** | $3.4 million defaults on payment terms. $3.1 million paid off in July 2023. $0.3 million TurnOnGreen note payable remains in default.
Notes Payable Maturities The contractual maturities of the Company’s notes payable, assuming the exercise of all extensions that are exercisable solely at the Company’s option, as of June 30, 2023 were:
Schedule of maturities |  |  |  |  |
Year |  |  |  |
2023 |  |  | $ | 36,339,000 |
2024 |  |  |  | 15,307,000 |
2025 |  |  |  | 85,712,000 |
2026 |  |  |  | 441,000 |
|  |  | $ | 137,799,000 |
Interest Expense
Schedule of interest expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | For the Three Months Ended |  |  | For the Six Months Ended |
|  | June 30, |  |  | June 30, |
|  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
Contractual interest expense |  | $ | 2,547,000 |  |  | $ | 1,999,000 |  |  | $ | 5,942,000 |  |  | $ | 2,920,000 |
Forbearance fees |  |  | 6,198,000 |  |  |  | - |  |  |  | 7,538,000 |  |  |  | 1,203,000 |
Amortization of debt discount |  |  | 7,182,000 |  |  |  | 32,000 |  |  |  | 16,177,000 |  |  |  | 27,732,000 |
Total interest expense |  | $ | 15,927,000 |  |  | $ | 2,031,000 |  |  | $ | 29,657,000 |  |  | $ | 31,855,000 |
Ault & Company Loan Agreement On June 8, 2023, the Company entered into a loan agreement with Ault & Company as lender. The loan agreement provides for an unsecured, non-revolving credit facility in an aggregate principal amount of up to $10 million. All loans under the loan agreement are due within five business days after request by Ault & Company. Ault & Company is not obligated to make any further advances under the loan agreement after December 8, 2023. Advances under the loan agreement bear interest at the rate of 9.5% per annum and may be repaid at any time without penalty or premium. As of June 30, 2023, $750,000 has been advanced under the loan agreement. Summary of interest expense, related party, recorded within interest expense on the condensed consolidated statement of operations:
Schedule of interest expense, related party |  |  |  |  |  |  |  |  |  |  |  |
|  | For the Three Months Ended |  |  | For the Six Months Ended |
|  | June 30, |  |  | June 30, |
|  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
Interest income, related party |  | $ | 5,000 |  |  | $ | - |  |  | $ | 5,000 |  |  | $ | - |
Amendment to 8.5% Secured Promissory Notes On July 19, 2023, the Company and certain of its subsidiaries entered into an amendment agreement with the institutional investors and increased the principal balance of the secured promissory notes by an additional $8.8 million. The net proceeds to the Company from the amendment agreement were $7.5 million. 10% Secured Promissory Notes The 10% secured promissory notes were retired in March 2023 and converted into the Preferred Shares, as described in Note 16 – Preferred Stock Liability. Amendments to 16% Secured Promissory Notes The Company entered into several amendments subsequent to the initial lending due to certain defaults on payment terms. The amendments included $4.6 million in extension fees and payments subsequent to June 30, 2023 of $10.3 million. Currently the loan maturity date was extended to September 15, 2023 and automatically extends for an additional 30 days for a $0.25 million extension fee for each extension period, with an interest rate of 16% and principal amount outstanding of $2.5 million. 3% Secured Promissory Notes During the quarter ended June 30, 2023, the holders of the 3% secured promissory notes exercised their rights of future participation whereby Sentinum issued additional promissory notes with a face amount of $10.4 million under the same terms as the existing notes, of which $5.5 million was outstanding and past due as of June 30, 2023. The 3% secured promissory notes were fully paid in July 2023. 8% Demand Promissory Notes On May 29, 2023, the Company issued two demand promissory notes with a total principal amount of $4.5 million, bearing an interest rate of 8%. The demand notes were issued at a discount, with net proceeds to the Company amounting to $2.0 million. The notes are due upon demand; however no demand may be made within 90 days of the issuance date.

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- 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
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