| Leases |
Note
14. Leases
The
Company leases GPU and associated computer and networking equipment under non-cancelable finance lease agreements. Lease terms generally
range from 3 to 5 years and may include options to extend or terminate the lease. Lease agreements may contain both lease and non-lease
components, which the Company accounts for as a single lease component for all asset classes under a practical expedient election. The
Company also elected the short-term lease exemption for all leases with original terms of 12 months or less, whereby such leases are
not recognized on the consolidated balance sheet.
Lease
cost
The
components of lease cost were as follows:
Schedule of Lease Cost
| | |
2026 | | |
2025 |
|
|
2026 |
|
|
2025 |
|
| | |
For the Three Months Ended |
|
|
|
For
the Six Months Ended
|
|
| | |
June 30, |
|
|
|
June
30,
|
|
| | |
2026 | | |
2025 |
|
|
2026 |
|
|
2025 |
|
| Description | |
| | |
|
|
|
|
|
|
|
| |
|
| Finance lease - interest | |
$ | 68,067 | | |
$ | 51,174 |
|
|
$ |
170,855 |
|
|
$ | 70,929 |
|
| Finance lease - amortization | |
$ | 441,623 | | |
$ | 124,534 |
|
|
$ |
711,085 |
|
|
$ | 266,156 |
|
| Total Lease Cost | |
$ | 509,690 | | |
$ | 175,708 |
|
|
$ |
881,940 |
|
|
$ | 337,085 |
|
Maturity
analysis of lease liabilities
Future
minimum lease payments at June 30, 2026 and December 31, 2025 are as follows:
Schedule of Future Minimum Lease Payments
| | |
June 30, | | |
December 31, | |
| | |
2026 | | |
2025 | |
| Description | |
| | | |
| | |
| 2026 | |
| 876,839 | | |
| 1,324,782 | |
| 2027 | |
| 1,416,988 | | |
| 1,324,782 | |
| 2028 | |
| 1,416,988 | | |
| 1,324,782 | |
| 2029 | |
| 1,289,556 | | |
| 1,201,139 | |
| 2030 | |
| 442,314 | | |
| 379,091 | |
| 2031 | |
| 21,502 | | |
| - | |
| Total | |
| 5,464,187 | | |
| 5,554,576 | |
| Less: Imputed interest | |
| 647,757 | | |
| 563,675 | |
| Present value of lease liabilities | |
$ | 4,816,430 | | |
$ | 4,990,901 | |
Other
information
Schedule
of Other
Information of Lease
| | |
June 30, | | |
December 31, | |
| | |
2026 | | |
2025 | |
| Weighted-average remaining lease term (years) | |
| 3.9 | | |
| 3.9 | |
| Weighted-average discount rate | |
| 5.87 | % | |
| 5.72 | % |
| ROU assets obtained in exchange for ROU Liability | |
$ | 384,785 | | |
$ | 8,236,478 | |
| Operating cash impact of finance leases | |
$ | 712,210 | | |
$ | 3,463,635 | |
|
Note
15. Leases
The
Company leases GPU and associated computer and networking equipment under non-cancelable finance lease agreements. Lease terms generally
range from 3 to 5 years and may include options to extend or terminate the lease. Lease agreements may contain both lease and non-lease
components, which the Company accounts for as a single lease component for all asset classes under a practical expedient election. The
Company also elected the short-term lease exemption for all leases with original terms of 12 months or less, whereby such leases are
not recognized on the consolidated balance sheet.
Lease
cost
The
components of lease cost were as follows:
Schedule
of Lease Cost
| | |
2025 | | |
2024 | |
| | |
For the Years Ended | |
| | |
December 31, | |
| | |
2025 | | |
2024 | |
| Description | |
| | |
| |
| Finance lease - interest | |
$ | 319,944 | | |
$ | 25,275 | |
| Finance lease - amortization | |
| 3,211,697 | | |
| 89,748 | |
| Total Lease Cost | |
$ | 3,531,641 | | |
$ | 115,023 | |
Maturity
analysis of lease liabilities
Future
minimum lease payments as of December 31, 2025 are as follows:
Schedule
of Future
Minimum Lease Payments
| | |
December 31, | | |
December 31, | |
| | |
2025 | | |
2024 | |
| Description | |
| | | |
| | |
| 2025 | |
$ | - | | |
$ | 230,044 | |
| 2026 | |
| 1,324,782 | | |
| 230,044 | |
| 2027 | |
| 1,324,782 | | |
| 230,044 | |
| 2028 | |
| 1,324,782 | | |
| 230,044 | |
| 2029 | |
| 1,201,139 | | |
| 115,022 | |
| 2030 | |
| 379,091 | | |
| - | |
| Total | |
| 5,554,576 | | |
| 1,035,198 | |
| Less: Imputed interest | |
| 563,675 | | |
| 88,492 | |
| Present value of lease liabilities | |
$ | 4,990,901 | | |
$ | 946,706 | |
Other
information
Schedule
of Other
Information of Lease
| | |
December 31, | | |
December 31, | |
| | |
2025 | | |
2024 | |
| Weighted-average remaining lease term (years) | |
| 3.9 | | |
| 4.5 | |
| Weighted-average discount rate: | |
| 5.72 | % | |
| 5.19 | % |
| ROU assets obtained in exchange for ROU Liability | |
$ | 8,236,478 | | |
$ | 1,057,779 | |
| Operating cash impact of finance leases | |
$ | 3,463,635 | | |
$ | 26,847 | |
|