v3.25.2
Accrued Liabilities
 6 Months Ended
Jun. 30, 2025
Payables and Accruals [Abstract]  
Accrued Liabilities

6. Accrued Liabilities

 

Accrued liabilities consist of the following at:

 

(Dollars in thousands)  June 30, 2025   December 31,
2024		 
         
Salaries, wages, and related expenses  $118   $552 
Liability to shareholders for previous acquisition   363    363 
Legal, audit, tax, and professional fees   1,290    537 
Sales tax accrual   -    575 
Real estate taxes accrual   301    182 
Hosting and utility fees   1,211    1,036 
Construction fees   2,238    2,211 
Membership distribution accrual   329    1,179 
Other   84    150 
Total  $5,934   $6,785 

 

Contract liability

 

 

 

 On March 24, 2025, CloudCo notified HPE of its termination of the HPE Agreement and, on March 26, 2025, HPE sent notice of its termination of the HPE Agreement. The HPE Agreement provided the Company access to datacenter and cloud services for AI and supercomputing applications utilizing NVIDIA H100 GPUs. In accordance with the terms of the HPE Agreement, CloudCo is required to pay all of the unpaid fees that were payable over the entire term of the HPE Agreement. As of December 31, 2024, the Company reduced its prepaid assets and other long-term assets by approximately $8.6 million, increased termination liability by approximately $20.0 million and recorded a loss on contract of approximately $28.6 million to account for the termination of the contract and CloudCo’s contractual payments. The liability has been reduced to approximately $19.3 million as of June 30, 2025. See Note 1 for details.