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Leases | 3 Months Ended
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Mar. 31, 2022
Disclosure Text Block [Abstract] |
LEASES | NOTE 5 – LEASES Luna Squares LLC 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 became effective February 23, 2021. A further amendment to the lease and exercise of option to lease was signed and became effective 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. The Company leases 6-acres of land in Pennsylvania which began in October 2021 for thirty-six months with the option to execute four additional three-year extensions. On March 16, 2022, Luna Squares LLC entered into a lease with respect to a property in the City of Sharon, Mercer County, Pennsylvania with Vertua Property, Inc. (A related entity – refer to note 12 for details). The term of the lease is for 5 years, and has 2 options to extend for 5 years each. 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:
|  | For the three months ended March 31, |
|  | 2022 |  |  | 2021 |
Operating lease charges (1) |  | $ | 367,135 |  |  | $ | 11,223 |
Finance lease charges: |  |  |  |  |  |  |  |
Amortization of right-of-use assets |  |  | 4,302 |  |  |  | - |
Interest on lease obligations |  |  | 1,478 |  |  |  | - |
|  | $ | 5,780 |  |  | $ | - |
| (1) | Included in Selling, General & Administrative Expenses.
|  | Operating leases |  |  | Finance Leases |
2023 |  | $ | 1,753,012 |  |  | $ | 38,068 |
2024 |  |  | 1,779,078 |  |  |  | 38,068 |
2025 |  |  | 1,172,787 |  |  |  | 38,068 |
2026 |  |  | 548,407 |  |  |  | 35,854 |
2027 |  |  | 419,568 |  |  |  | 7,669 |
Total undiscounted lease obligations |  |  | 5,672,852 |  |  |  | 157,727 |
Less imputed interest |  |  | (742,037 | ) |  |  | (22,606 | )
Total present value of lease liabilities |  |  | 4,930,815 |  |  |  | 135,121 |
Less current portion of lease liabilities |  |  | (1,410,192 | ) |  |  | (28,962 | )
Non-current lease liabilities |  | $ | 3,520,623 |  |  | $ | 106,159 |
|  | Operating leases |  |  | Finance Leases |
Operating cash flows from operating and finance leases |  | $ | 373,936 |  |  | $ | 5,090 |
Weighted-average remaining lease term – operating and finance leases (years) |  |  | 3.42 |  |  |  | 1.52 |
Weighted-average discount rate – operating and leases (%) |  |  | 8.0 | % |  |  | 2.6 | %

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI https://asc.fasb.org/subtopic&trid=77888251 + Details
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