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OPERATING LEASE LIABILITIES

3 Months Ended

Mar. 31, 2024

NOTE 6 OPERATING LEASE LIABILITIES

In April 2022, the Company entered into a 58-month lease related to certain office and showroom space pursuant to a sublease that expires in February 2027. The Company recognized a right-of-use asset and a liability of $1,428,764 pursuant to this lease.

In September 2022, the Company entered in a 124-month lease related to its future headquarters offices and showrooms space. The Company recognized a right-of-use asset and a liability of $22,192,503 pursuant to such lease. In connection with the execution of lease, the Company was required to provide the landlord with a letter of credit in the amount of $2.7 million, which is secured by the same amount of cash.

In January 2024 the Belami, subsidiary of SKYX entered in a 35-month lease related to its Sacramento office. The Company recognized a right-of-use asset and a liability of $ 662,698 pursuant to such lease.

The following table outlines the total lease cost for the Company’s operating leases as well as weighted average information for these leases as of March 31, 2024:

SCHEDULE OF LEASE COST OPERATING LEASE

	March 31, 2024
Lease costs:
Cash paid for operating lease liabilities	$	505,920
Right-of-use assets obtained in exchange for new operating lease obligations	$	21,360,642
Fixed rent payment	$	300,933
Lease – Depreciation expense	$	516,707

	years ended
	March 31, 2024
Other information:
Weighted-average discount rate		6.41	%
Weighted-average remaining lease term (in months)		107


Minimum Lease obligation
Nine months ended December 31, 2024	$	1,595,397
2025		2,346,540
2026		2,589,372
2027		2,288,363
2028 and thereafter		15,703,089
Total	$	24,522,761