14. LOAN

9 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

LOAN

14.LOANS

As of June 30, 2023, the Company had a gross balance outstanding of $18,052, netted against discount on the loans payable of $204. Total principal payments on loans during the nine months ended June 30, 2023 was $12,493.

The following is a schedule of the Company's future loan payments and loan balance, net of debt discount, as of June 30, 2023:

($ in thousands)	Maturity Date	Rate	Debt Balance, Net
Master Equipment Financing Arrangement	Apr-25	13.80%	$	13,074
Mortgage - Corporate Facility	Apr-25	10.00%	$	1,942
SPRE Commercial Group, Inc.	Aug-23	12.00%		342
Marquee Funding Partners	Jul-26 - Feb-27	13.00%		1,830
Auto & Equipment Loans	Oct-26 - Oct-28	0.99-9.60%		660
Total Loans Outstanding			$	17,848
Less: current portion of long-term loans				(7,076	)
Long-term loans, excluding current portion			$	10,772

($ in thousands)	5-Year Loan Maturities
Outstanding Loan	FY 2023		FY 2024		FY 2025		FY 2026		FY 2027		Thereafter		Total
Master Equipment Financing Arrangement	$	1,490	$	6,508	$	5,221	$	—	$	—	$	—	$	13,219
Mortgage - Corporate Facility		—		—		2,000		—		—		—		2,000
SPRE Commercial Group, Inc.		343		—		—		—		—		—		343
Marquee Funding Partners		105		458		521		593		153		—		1,830
Auto & Equipment Loans		37		152		159		148		81		83		660
Total principal amount of loan payments by fiscal year	$	1,975	$	7,118	$	7,901	$	741	$	234	$	83	$	18,052
Unamortized deferred financing costs and discounts														(204	)
Total loan book value as of June 30, 2023													$	17,848

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). 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 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 Godby, GA and Norcross, GA sites.

SPRE Commercial Group, Inc.

In connection with the WAHA Transaction, the Company entered into a financing arrangement with the seller. The loan has a term of 12 months with monthly payments of $174 and a stated interest rate of 12%.

Marquee Funding Partners

In connection with the WAHA Transaction, certain assets were encumbered with mortgages which the Company assumed. The mortgages assumed have a current unpaid principal balance of $2,031 and remaining payment terms ranging from 47-54 months and annual interest of 13%.

Auto Loans

The Company has entered into various financing arrangements to purchase vehicles and non-miner equipment with combined principal amount of $660. The loans vary in terms from 48-72 months with annual interest rates ranging from 0.99% - 9.60%. The loans are secured with the purchased vehicles and equipment. During the nine months ended June 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 48-72 months and interest rates ranging from 0.99%-9.60%.