Company: ANY
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001591956-25-000014
Chunk: 17

Company: Sphere 3D Corp.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 1
Chunk 17
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 all principal and accrued interest is due and payable. The Company has the right, at any time, to convert all or any portion of the then outstanding and unpaid Rainmaker Note and interest into shares of Rainmaker common stock at the conversion price as defined in the Rainmaker Note. All amounts related to the Rainmaker Note have been fully reserved in prior periods.

6.    Certain Balance Sheet Items

The following table summarizes other current assets (in thousands): September 30,2025December 31,2024Bitcoin mining hosting deposit$1,075 $2,490 Prepaid insurance639 547 Prepaid services256 270 Prepaid mining hosting services— 100 Other88 31 Other current assets$2,058 $3,438 In January 2025, the Company terminated the Rebel Hosting Agreement and agreed to a settlement amount of $2.4 million, which was included in Bitcoin mining hosting deposit at December 31, 2024. 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.

14

The following table summarizes property and equipment, net (in thousands):September 30,2025December 31,2024Mining equipment$26,799 $27,214 Infrastructure1,516 — Construction in progress— 1,750 Total28,315 28,964 Accumulated depreciation(9,417)(6,997)Property and equipment, net$18,898 $21,967 Depreciation expense for property and equipment was $1.4 million for both the three months ended September 30, 2025 and 2024. Depreciation expense for property and equipment was $3.9 million and $4.3 million for the nine months ended September 30, 2025 and 2024, respectively.For the nine months ended September 30, 2025 and 2024, the Company sold 2,966 and 450 miners, respectively, that were included in mining equipment, for proceeds of $1.8 million and $0.2 million, respectively. In addition, for the nine months ended September 30, 2025, there were infrastructure related assets sold for proceeds of $0.3 million. The Company had a loss on the sale of property and equipment of $0.