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Leases

6 Months Ended

Jun. 30, 2024

NOTE 5 – LEASES

The Company’s operating leases are for digital mining sites and its finance leases are primarily for related plant and equipment.

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,
	2024		2023		2024		2023
Operating lease charges ⁽¹⁾	$	393,314	$	404,778	$	791,208	$	811,991
Finance lease charges:
Amortization of right-of-use assets	$	39,695	$	8,143	$	47,838	$	16,287
Interest on lease obligations	$	10,191	$	1,310	$	11,698	$	4,021

(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, 2024:

	Operating leases			Finance leases

Remainder of 2024	$	898,516		$	206,588
2025		1,728,559			413,176
2026		1,601,064			216,266
2027		1,108,025			-
Total undiscounted lease obligations		5,336,164			836,030
Less inputed interest		(1,012,995	)		(107,357	)
Total present value of lease liabilities		4,323,169			728,673
Less current portion of lease liabilities		1,319,040			335,513
Non-current lease liabilities	$	3,004,129		$	393,160

Other lease information as of June 30, 2024:

	Operating leases			Finance leases

Operating cash out flows from leases	$	629,341		$	123,478
Weighted-average remaining lease term (years)		3.04			1.84
Weighted-average discount rate (%)		8.6	%		13.4	%