10. LOAN

3 Months Ended

Dec. 31, 2023

Debt Disclosure [Abstract]

LOAN

LOANS

As of December 31, 2023, the Company had a gross balance outstanding of $14,617, netted against discount on the loans payable of $150. Total principal payments on loans during the three months ended December 31, 2023 was $1,701.

The following is a schedule of the Company's and loan balance, net of debt discount and future loan payments, as of December 31, 2023:

			December 31, 2023			September 30, 2023
($ in thousands)	Maturity Date	Rate	Debt Balance, Net			Debt Balance, Net
Master Equipment Financing Arrangement	Apr-25	13.80%	$	10,076		$	11,603
Mortgage - Corporate Facility	Apr-25	10.00%		1,957			1,950
Marquee Funding Partners	Jul-26 - Feb-27	13.00%		1,616			1,725
Auto & Equipment Loans	Sep 24 - Dec -29	0.0-11.3%		819			625
Total Loans Outstanding			$	14,468		$	15,903
Less: current portion of long-term loans				(7,421	)		(6,992	)
Long-term loans, excluding current portion			$	7,047		$	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	$	4,962	$	5,221	$	—	$	—	$	—	$	—	$	10,183
Mortgage - Corporate Facility		—		2,000		—		—		—		—		2,000
Marquee Funding Partners		349		521		592		154						1,616
Auto & Equipment Loans		154		215		206		115		92		36		818
Total principal amount of loan payments by fiscal year	$	5,465	$	7,957	$	798	$	269	$	92	$	36	$	14,617
Unamortized deferred financing costs and discounts														(150	)
Total loan book value as of December 31, 2023													$	14,467

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 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 WAHA Transaction, certain assets were encumbered with mortgages which the Company assumed. The mortgages assumed have a current unpaid principal balance of $1,616 and remaining payment terms ranging from 32-39 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 outstanding at December 31, 2023 of $819. 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 three months ended December 31, 2023, the Company entered into six separate agreements for the purchase of machinery, autos and equipment with a combined principal of $240, with terms ranging from 12-72 months and interest rates ranging from 0%-11.3%.