Hyperscale Data, Inc. Debt Disclosure
19. NOTES PAYABLE
Notes payable at December 31, 2025 and 2024, were comprised of the following:
| Collateral | Guarantors | Interest rate | Effective rate(1) | Due date | December 31, 2025 | December 31, 2024 | |||||||||||||
| AGREE secured construction loans, in default | AGREE hotels | - | 9% | 9% | January 1, 2026 | $ | 68,750,000 | $ | 68,750,000 | ||||||||||
| Circle 8 revolving credit facility | Circle 8 cranes with a book value of $25.6 million | - | 9% | 9% | June 16, 2026 | 7,205,000 | 13,126,000 | ||||||||||||
| Circle 8 equipment financing notes | Circle 8 equipment with a book value of $3.2 million | - | 6% | 6% | Various dates through July 20, 2029 | 2,171,000 | 2,826,000 | ||||||||||||
| 15% term notes, in default | - | Milton C. Ault, III | 15% | October 31, 2024 | 3,777,000 | ||||||||||||||
| ROI promissory note, in default | - | - | 18% | 36% | May 15, 2025 | 2,367,000 | |||||||||||||
| Other ($0.9 million in default) | - | - | 6% | Various | 4,995,000 | 5,826,000 | |||||||||||||
| Total notes payable | $ | 83,121,000 | $ | 96,672,000 | |||||||||||||||
| Less: | |||||||||||||||||||
| Unamortized debt discounts | |||||||||||||||||||
| Total notes payable, net | $ | 83,121,000 | $ | 96,672,000 | |||||||||||||||
| Less: current portion | (82,055,000 | ) | (95,768,000 | ) | |||||||||||||||
| Notes payable – long-term portion | $ | 1,066,000 | $ | 904,000 | |||||||||||||||
| (1) | Includes forbearance and extension fees and OID costs that are amortized to interest expense over the life of the notes. |
Amendment to AGREE Secured Construction Loans
The AGREE secured construction loans with an original due date of January 1, 2025, were amended on February 2, 2025, whereby AGREE agreed to pay monthly installments of interest only based on an annualized interest rate of Term SOFR plus 4.75%. In addition, AGREE agreed to make principal payments of $1.0 million in June 2025 and $2.0 million in September 2025 and December 2025 with the balance due March 1, 2026. AGREE has failed to make timely interest payments per the amended payment terms.
Gain on Extinguishment of ROI Note Payable
During the year ended December 31, 2025, the Company recognized a gain on extinguishment of debt of $1.1 million related to the pay-off of an ROI note payable.
Notes Payable Maturities
Principal maturities of the Company’s notes payable, assuming the exercise of all extensions that are exercisable solely at the Company’s option, as of December 31, 2025 were:
| Year | |||||
| 2026 | $ | 82,055,000 | |||
| 2027 | 488,000 | ||||
| 2028 | 354,000 | ||||
| 2029 | 224,000 | ||||
| $ | 83,121,000 | ||||
Interest Expense
Interest expense includes amounts incurred on notes payable, convertible notes payable, and notes payable to related parties. The components of interest expense for the years ended December 31, 2025 and 2024 were as follows:
| For the Year Ended | ||||||||
| December 31, | ||||||||
| 2025 | 2024 | |||||||
| Contractual interest expense | $ | 11,153,000 | $ | 11,925,000 | ||||
| Forbearance fees | 505,000 | 2,214,000 | ||||||
| Amortization of debt discount | 4,462,000 | 5,532,000 | ||||||
| Total interest expense | $ | 16,120,000 | $ | 19,671,000 | ||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Apr 15, 2026 | Showing above |
| 2024 | Apr 15, 2025 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.