NOTE 9 – COMPUTE NORTH BANKRUPTCY

On September 22, 2022, Compute North Holdings, Inc. (along with its affiliated debtors, collectively, “Compute North”), filed for chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas under chapter 11 of the U.S. Bankruptcy Code (11 U.S. Code section 101 et seq.). The Company’s financial exposure to Compute North at the time of the bankruptcy filing included:

The Company’s financial exposure to Compute North on the date of the Bankruptcy was approximately $81,000 thousand. During the third quarter the Company assessed the impairment of these assets given the bankruptcy proceedings and estimated that the preferred stock, the unsecured loan, and approximately $8,000 thousand in deposits were fully impaired. As a result, the company recorded an impairment charge of $39,000 thousand during the third quarter of 2022. During the fourth quarter of 2022, the company estimated that an additional $16,674 thousand in deposits had likely been impaired and as such recorded an additional impairment charge.

On February 16, 2023, the Bankruptcy Court approved the Debtors Plan of Reorganization, pursuant to which Marathon’s claim has been fixed at $40,000 thousand as an unsecured claim to be paid out according to the timing and percentages within the approved Debtor’s plan.