Debt, Related Parties

6 Months Ended

Jun. 30, 2021

Debt Disclosure [Abstract]

Debt, related parties

Note 10 — Debt, related parties

Debt as of June 30, 2021, and December 31, 2020, consisted of the following (in thousands): 

	As of June 30,		As of December 31,
	2021		2020
Short-Term Debt
Loan from shareholder	$	-	$	75
First Choice Promissory Note Payable (A)		1,070		-
CoreWeave Inc. Purchase order – GH Hardware (B)		1,156		-
Total Short-Term Debt	$	2,226	$	75

(A) First Choice Promissory Note Payable

On March 19, 2021, the Company, Systat and First Choice International Company, Inc. (“Lender”) entered into a Letter Agreement (“Letter Agreement”), providing for the advance payment by the Lender of $2.0 million (“Advance”) to Systat on behalf of the Company.

Please see Note 15 Subsequent Events, regarding satisfaction and repayment of the debt in full on July 8, 2021.

(B) CoreWeave, Inc. Purchase Order- GH Hardware

The Company acquired 1,344 GPU data mining equipment with 125 gigahash of computing power in a lease to buy arrangement with a stated contract price per gigahash. The Company agreed to total payments of $2.2 million over 180 days subject to acceleration based on the completion of certain corporate events. Revenue generated by operation of the equipment from April 1, 2021, shall be credited against the purchase price until payment of the balance of the purchase price. The Company has determined that the fair value of the installment payments is $2.13 million and will record $0.07 million in financing interest costs for the aggregate $2.2 million in total payments. The Company recognized approximately $0.04 million of such interest expense during the three and six months ended June 30, 2021.

Please see Note 15 Subsequent Events, regarding satisfaction and repayment of the debt in full on July 21, 2021.