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Leases

6 Months Ended

Jun. 30, 2023

NOTE 4 – LEASES

During the quarter ended June 30, 2023, the Company entered into two new lease agreements, outlined below.

Effective May 1, 2023 Mawson Ohio LLC took an assignment of a lease agreement for approximately 64,600 square foot for a undeveloped site in Corning, Ohio. The term of the lease is for four years, with an option to extend for five years.

Effective May 24, 2023 Mawson Bellefonte LLC entered into a lease agreement for a 9,918 square foot developed mining facility in Bellefonte, PA. The term of the lease is for two years and seven months, with an option to extend for five years.

The Company’s lease costs recognized in the Consolidated Condensed Statements of Operations consist of the following:

	For the three months ended June 30,				For the six months ended June 30,
	2023		2022		2023		2022
Operating lease charges ⁽¹⁾	$	404,778	$	434,977	$	811,991	$	802,112
Finance lease charges:
Amortization of right-of-use assets	$	8,143	$	8,094	$	16,287	$	12,396
Interest on lease obligations	$	1,310	$	2,468	$	4,021	$	3,946

(1)	Included in selling, general and administrative expenses.

The following is a schedule of the Company’s lease liabilities by contractual maturity as of June 30, 2023:

	Operating leases			Finance leases

2023	$	858,374		$	19,088
2024		1,548,388			38,176
2025		592,926			38,176
2026		434,033			15,016
2027		70,191			-
Total undiscounted lease obligations		3,503,912			110,456
Less imputed interest		(375,676	)		(11,597
Total present value of lease liabilities		3,128,236			98,859
Less current portion of lease liabilities		1,649,529			31,859
Non-current lease liabilities	$	1,478,707		$	67,000

Other lease information as of June 30, 2023:

	Operating leases			Finance leases

Operating cash out flows from leases	$	728,837		$	19,088
Weighted-average remaining lease term (years)		2.33			2.89
Weighted-average discount rate (%)		8.9	%		7.5	%