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Leases

12 Months Ended

Dec. 31, 2024

NOTE 7: LEASES

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

The Company leases 8-acres of land in Midland Pennsylvania under a lease which was amended and renewed in September 2024 for an additional thirty-six months. The lease can be renewed three more times for an additional nine years in total.

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.

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

Other than the foregoing leases, the Company does not lease any other material assets. The Company believes that these facilities are suitable and adequate for its operations as currently conducted and as currently foreseen.

The Company’s lease costs recognized in the consolidated statements of operations and comprehensive loss consist of the following:

	For the Years Ended
	December 31,
	2024		2023

Operating lease charges ⁽¹⁾	$	1,771,150	$	1,698,383
Finance lease charges:
Amortization of right-of-use assets		253,432		32,574
Interest on lease obligations		56,086		7,474

⁽¹⁾	Included in Selling, General & Administrative Expenses.

The following is a schedule of the Company’s lease liabilities by contractual maturity as of December 31, 2024:

	Operating Leases			Finance Leases

2025	$	1,712,681		$	413,176
2026		1,586,044			216,266
2027		1,270,570			-
Total undiscounted lease obligations		4,569,295			629,442
Less: imputed interest		(774,349	)		(62,970	)
Total present value of lease liabilities		3,794,946			566,472
Less: current portion of lease liabilities		1,270,989			358,515
Non-current lease liabilities	$	2,523,957		$	207,957

Other lease information as of December 31, 2024:

	Operating Leases			Finance Leases

Operating cash out flows from leases	$	1,899,426		$	330,067
Weighted-average remaining lease term (years)		2.65			1.34
Weighted-average discount rate (%)		8.6	%		13.4	%