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Leases

3 Months Ended

Mar. 31, 2025

NOTE 5 – LEASES

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

On February 2, 2024, the Company’s lease for a non-operating property in Sharon, Pennsylvania was terminated, and the Company exited the facility, which was a non-operating site for the Company.

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

	March 31,
	2025		2024

Operating lease charges ⁽¹⁾	$	445,435	$	397,894
Finance lease charges:
Amortization of right-of-use assets		102,797		8,143
Interest on lease obligations		18,074		1,507

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

The following is a schedule of the Company’s lease liabilities by contractual maturity as of March 31, 2025:

	Operating leases			Finance leases

2025	$	1,325,890		$	309,882
2026		1,586,044			216,266
2027		1,270,570			-
Total undiscounted lease obligations		4,182,504			526,148
Less: imputed interest		(647,245	)		(44,896	)
Total present value of lease liabilities		3,535,259			481,252
Less: current portion of lease liabilities		1,283,391			368,395
Non-current lease liabilities	$	2,251,867		$	112,858

Other lease information as of and for the period ended March 31, 2025:

	Operating leases			Finance leases

Operating cash out flows from leases	$	380,839		$	103,295
Weighted-average remaining lease term (years)		2.43			1.09
Weighted-average discount rate (%)		13.70	%		13.44	%