Company: ANY
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001591956-25-000014
Chunk: 60

Company: Sphere 3D Corp.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 8
Chunk 60
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 months ended September 30, 2025 and 2024, the Company incurred costs under the Rebel Hosting Agreement of $0.1 million and $3.0 million, respectively. For the three and nine months ended September 30, 2025, the Company recorded a $0.3 million provision for the remaining outstanding portion of the settlement that is in default.Management AgreementIn March 2025, the Company entered into a management services agreement with Simple Mining LLC (“Simple Mining”) to manage its 8 MW site in Iowa for a term of 12 months, renewable for subsequent one-year terms. For the three and nine months ended September 30, 2025, management services fees paid to Simple Mining were $56,000 and $139,000, respectively. Financial Advisory AgreementIn July 2025, the Company entered into a financial advisory and consulting agreement for a term of 12 months, with automatic one month renewal periods. The agreement can be canceled by either party at any time with 10 days written notification to the other party. Fees are $25,000 per month for ongoing work, and a $1.45 million fee for certain transactions, payable in cash and equity. For both the three and nine months ended September 30, 2025, fees paid under the financial and advisory agreement were $0.3 million.

21

Letters of CreditDuring the ordinary course of business, the Company provides standby letters of credit to third parties as required for certain transactions initiated by the Company. As of September 30, 2025, the Company had no outstanding standby letters of credit.Litigation 

The Company is, from time to time, subject to claims and suits arising in the ordinary course of business. The Company cannot predict the final outcome of such proceedings. Where appropriate, the Company vigorously defends such claims, lawsuits and proceedings. Paid expenses related to the defense of such claims are recorded by the Company as incurred and paid. On the basis of current information, the Company does not believe there is a reasonable possibility that a material loss, if any, will result from any claims, lawsuits and proceedings to which the Company is subject to either individually, or in the aggregate. 

13.Subsequent Events

On October 16, 2025, the Company entered into a warrant inducement agreement with an existing institutional investor of the Company for the immediate exercise of the November 2024 warrants to purchase 4,368,211 common shares (the “Existing Warrants”)