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Leases

9 Months Ended

Sep. 30, 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.

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,
	2025		2024		2025		2024
Operating lease charges ⁽¹⁾	$	442,245	$	533,963	$	1,306,137	$	1,325,171
Finance lease charges:
Amortization of right-of-use assets	$	102,797	$	102,797	$	308,391	$	150,635
Interest on lease obligations	$	12,230	$	23,536	$	45,505	$	35,234

(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, 2025:

	Operating leases			Finance leases

2025	$	391,538		$	103,294
2026		1,586,044			216,266
2027		1,270,570			-
Total undiscounted lease obligations		3,248,152			319,560
Less: imputed interest		(426,443	)		(17,465	)
Total present value of lease liabilities		2,821,709			302,095
Less: current portion of lease liabilities		1,301,197			300,191
Non-current lease liabilities	$	1,520,512		$	1,904

Other lease information as of and for the period ended September 30, 2025:

	Operating leases			Finance leases

Operating cash out flows from leases	$	1,287,140		$	309,882
Weighted-average remaining lease term (years)		1.96			0.60
Weighted-average discount rate (%)		13.80	%		13.50	%