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Leases

9 Months Ended

Sep. 30, 2024

NOTE 5 – LEASES

The Company’s operating leases are for digital mining and colocation 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 September 30,				For the nine-Months ended September 30,
	2024		2023		2024		2023
Operating lease charges ⁽¹⁾	$	533,963	$	448,449	$	1,325,171	$	1,260,440
Finance lease charges:
Amortization of right-of-use assets	$	102,797	$	8,143	$	150,635	$	24,430
Interest on lease obligations	$	23,536	$	1,799	$	35,234	$	5,820

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

The following is a schedule of the Company’s lease liabilities by contractual maturity as of September 30, 2024:

	Operating leases			Finance leases

Remainder of 2024	$	380,839		$	103,294
2025		1,710,898			413,176
2026		1,584,205			216,266
2027		1,270,570			-
Total undiscounted lease obligations		4,946,512			732,736
Less imputed interest		(909,388	)		(83,821	)
Total present value of lease liabilities		4,037,124			648,915
Less current portion of lease liabilities		1,208,262			346,819
Non-current lease liabilities	$	2,828,862		$	302,095

Other lease information as of September 30, 2024:

	Operating leases			Finance leases

Operating cash out flows from leases	$	1,516,767		$	226,773
Weighted-average remaining lease term (years)		2.89			1.59
Weighted-average discount rate (%)		8.6	%		13.4	%