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Leases

12 Months Ended

Dec. 31, 2021

NOTE 9:-

LEASES

As of December 31, 2021, the Company owns 100% of the equity of Luna Squares, LLC. Luna Squares leases a 16.35-acre lot in Georgia from the Development Authority of Washington County. The lease term was originally for 1 acre from May 1, 2020, until April 30, 2023. An amendment to the lease and exercise of option to lease four additional acres was signed and in effect from February 23, 2021. A further amendment to the lease and exercise of option to lease was signed and in effect from August 24, 2021. The Lease Amendment covers an additional 11.35 acres of the property, bringing the total to 16.35 acres under the lease. It also includes 5, 3-year extension options bringing the total lease period to run until 2038.

The Company leases the headquarters of its business operations at Level 5, 97 Pacific Highway, North Sydney NSW 2060 Australia, being 1,076 square feet of office space held under a license agreement.

On September 20, 2021, the Company signed a new lease for 6-acres of land in Pennsylvania for thirty-six months with the option to execute four additional three year extensions.

Other than the foregoing leases, the Company does not lease any material assets. The Company believes that these offices and facilities are suitable and adequate for its operations as currently conducted and as currently foreseen. In the event additional or substitute offices and facilities are required, the Company believes that it could obtain such offices and facilities at commercially reasonable rates.

The Company’s lease costs recognized in the Consolidated Statements of Income and Comprehensive Loss consist of the following:

	December 31,
	2021		2020

Operating lease charges ⁽¹⁾	$	452,479	$	7,595
Finance lease charges:
Amortization of right-of-use assets		792		-
Interest on lease obligations		317		-
	$	453,588	$	7,595

⁽¹⁾

Included in Selling, General & Administrative Expenses.

	Operating leases			Finance Leases

2022	$	1,512,008		$	11,561
2023		1,533,321			11,561
2024		1,237,272			11,561
2025		280,558			11,561
2026		210,419			10,599
Total undiscounted lease obligations		4,773,578			56,843
Less imputed interest		(588,431	)		(9,974	)
Total present value of lease liabilities		4,185,147			46,869
Less current portion of lease liabilities		(1,222,382	)		(8,105	)
Non-current lease liabilities	$	2,962,765		$	38,764

	Operating leases			Finance Leases

Operating cash flows from operating and finance leases	$	230,962		$	962
Weighted-average remaining lease term – operating and finance leases (years)		3.25			4.92
Weighted-average discount rate – operating and leases (%)		8.0	%		8.0	%