Company: ANY
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001591956-25-000014
Chunk: 66

Company: Sphere 3D Corp.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 8
Chunk 66
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 daily at midnight Universal Time Coordinated (“UTC”). The terms, conditions, and compensation are at the current market rates, and accordingly the renewal option is not a material right. The contract arises at the point that we provide hash calculation services to the mining pool operator, which is the beginning of the contract day at midnight UTC time (contract inception), as customer consumption is in tandem with daily earnings of delivery of the service. According to the customer contract, daily earnings are calculated from midnight-to-23:59:59 UTC time, and the payout is made one hour later at 1:00 AM UTC time.

Recent Key Events

•On October 16, 2025, we 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”) of the Company. The Existing Warrants were exercised at a reduced exercise price of $0.94 for total gross cash proceeds of $4.1 million, before deducting financial advisor fees and other transaction expenses of $0.3 million. We intend to use the net proceeds from the offering for working capital and other general corporate purposes. In consideration for the immediate exercise in full of the Existing Warrants, the investor received in a private placement new unregistered warrants to purchase up to 8,736,422 common shares (the “New Warrants”). The New Warrants have an exercise price of $0.94 and will be initially exercisable on the date that shareholder approval of the issuance of the New Warrants is obtained. The New Warrants will expire five years from the date of such approval.

•In October 2025, we entered into a Hosting Agreement with North Campbell HostCo LLC (the “Campbell Hosting Agreement”) effective November 1, 2025, for rack space, network services, electrical connections, routine facility maintenance, and technical support of certain of our mining equipment. The Campbell Hosting Agreement has an initial term of 12 months and an initial deposit of $0.2 million.

•In October 2025, we purchased new generation mining machines for $3.9 million, which are expected to increase deployed EH/s by approximately 25% during the fourth quarter of 2025.

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•In July 2025, we 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