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COVENANTS
 12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
COVENANTS LONG-TERM DEBT
Long-term debt consisted of the following as of:
December 31, 2021December 31,
2020
$66,076 loan, with interest at 5.55%, due July 2021.
$3,054 $16,440 
$75,000 loan, with interest at 12.67%, due April 2021.
7,312 14,934 
$142,000 loan, with interest at 11.21%, due April 2021.
— 18,056 
$70,000 loan, with interest at 11.92%, due April 2021.
— 8,974 
$499,520 loan, with interest at 2.49% due December 2023.
232,337 333,599 
$499,895 loan, with interest at 2.95% due July 2023.
246,720 371,490 
$212,675 loan, with interest at 6.75% due October 2022.
103,857 168,397 
$517,465 loan, with interest at 4.78% due October 2024.
490,600 — 
$431,825 loan, with interest at 7.60% due April 2024.
204,833 — 
  financing agreement for insurance with interest at 3.45% due July 2022.
4,299,721 — 
$40,000,000 loan, with interest at 10.00% due June 2023.
30,734,045 [A]— 
$10,641,362 loan, with interest at 10.00% due June 2023.
8,176,302 [B]— 
$14,077,800 loan, with interest at 10.00% due June 2023.
10,816,694 [C]— 
$17,984,000 maximum advance loan, interest at 9.99% due December 2023. Balance is what has been advanced as of December 31, 2021.
10,790,400 [D]— 
$17,984,000 maximum advance loan, with interest at 9.99% due December 2023. Balance is what has been advanced as of December 31, 2021.
7,769,088 [E]— 
$17,984,000 maximum advance loan, 2022 with interest at 9.99% due December 2023. Balance is what has been advanced as of December 31, 2021.
— [F]— 
73,874,963 931,890 
Less current portions, deferred costs, & discounts
Outstanding loans50,099,372 449,447 
Deferred debt issuance costs2,854,787 — 
     Discounts from issuance of stock1,042,416 — 
Discounts from issuance of warrants1,499,547 — 
$18,378,841 $482,443 
[A] The WhiteHawk Promissory Note has a term of 24 months. Refer to Note 14 – Stock Issued Under Financing Agreements and Warrants for further discussions. On December 31, 2021, the Company amended the WhiteHawk Financing Agreement (the “WhiteHawk Amendment”) to extend the final MinerVa delivery date from December 31, 2021 to April 30, 2022. Pursuant to the WhiteHawk Amendment, Equipment paid an amendment fee in the amount of $250,000 to WhiteHawk. These fees are included in deferred debt issuance costs.
[B] Arctos/NYDIG Financing Agreement [loan #1] with a term of 24. Refer to Note 14 - Stock Issued Under Financing Agreements and Warrants for further discussions. Refer to Note 32 - Subsequent Events for details of the amendment to this agreement.
[C] Arctos/NYDIG Financing Agreement [loan #2] with a term of 24. Refer to Note 14 - Stock Issued Under Financing Agreements and Warrants for further discussions. Refer to Note 32 - Subsequent Events for details of the amendment to this agreement.
[D] NYDIG ABL Master Equipment Finance Agreement with a term of 24. Deferred debt issuance costs of $449,600 are amortized over the term of the loan using the straight-line method. Refer to Note 32 - Subsequent Events for further advances after December 31, 2021.
[E] NYDIG ABL Master Equipment Finance Agreement with a term of 24. Deferred debt issuance costs of $449,600 are amortized over the term of the loan using the straight-line method. Refer to Note 32 - Subsequent Events for further advances after December 31, 2021.
[F] NYDIG ABL Master Equipment Finance Agreement with a term of 24. Deferred debt issuance costs of $449,600 are amortized over the term of the loan using the straight-line method. Refer to Note 32 - Subsequent Events for further advances after December 31, 2021.
Future scheduled maturities on the outstanding borrowings for each of the next three years as of December 31, 2021 are as follows:
Years ending December 31:
2022$51,777,764 
202321,955,328 
2024141,871 
$73,874,963 
PAYCHECK PROTECTION PROGRAM LOAN, ECONOMIC INJURY DISASTER LOAN
On March 16, 2021, the Company received a round two Paycheck Protection Program ("PPP") loan in the amount of $841,670 that accrues an interest of 1% per year; and matures on the fifth anniversary of the date of the note. As of December 31, 2021, the Company is in process of seeking forgiveness of the PPP loan. In January 2021, the Company was granted relief as forgiveness for the round one PPP loan in the amount of $638,800.
On June 8, 2021, the Company repaid the Economic Injury Disaster Loan (“EIDL”), received on March 31, 2020, in the amount of $150,000. This loan, plus accrued interest, was outstanding as of December 31, 2020.
PREMIUM FINANCING AGREEMENTEffective October 21, 2021, the Company entered into a director and officer insurance policy with annual premiums totaling $6.9 million. The Company has executed a Commercial Premium Finance Agreement with AFCO Premium Credit LLC over a term of nine months, with an annual interest rate of 3.454%, that finances the payment of the total premiums owed. The agreement requires a $1.4 million down payment, with the remaining $5.5 million plus interest paid over nine months. Monthly payments of $621.3 thousand start November 21, 2021 and end July 21, 2022. As of December 31, 2021, the unpaid balance is $4.3 million.COVENANTS On December 31, 2021, Equipment and WhiteHawk entered into the WhiteHawk Amendment to extend the Final MinerVa Delivery Date from December 31, 2021 to April 30, 2022. Pursuant to the WhiteHawk Amendment, Equipment LLC paid an amendment fee in the amount of $250,000 to WhiteHawk. Pursuant to the WhiteHawk Amendment's covenants, WhiteHawk can accelerate payment of the loan if the revised final MinerVa delivery date is not achieved.