PREPAID EXPENSES, OTHER CURRENT ASSETS AND LAND DEPOSIT
|9 Months Ended|
Sep. 30, 2022
|Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]|
|PREPAID EXPENSES, OTHER CURRENT ASSETS AND LAND DEPOSIT||
3. PREPAID EXPENSES, OTHER CURRENT ASSETS AND LAND DEPOSIT
SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT ASSETS
During the year ended December 31, 2020, the Company entered into a land purchase agreement in relation to construction of a facility in Coachella, California. A deposit of $170,000 was paid and the balance of the purchase price is subject to financing. On April 6, 2021, the scheduled close of escrow was extended to April 30, 2021, and the purchase price was increased to $4.4 million. The Company wrote off the non-refundable portion of the deposit amounting to $150,000 on December 31, 2021. During the nine months ended September 30, 2022, the Company was returned the remaining $20,000 of the deposit.
On August 31, 2022, the Company signed a purchase and sale agreement with Stronghold Power Systems, Inc. (“Stronghold”), to purchase approximately seventy acres of land located in the City of Coachella as well as the completion of certain permitting, zoning, and infrastructure work by Stronghold for a total purchase price of $4,300,000. The purchase price consists of:
At September 30, 2022 the $2,085,960 of prefunded warrants was recorded under land deposit in relation to the Stronghold agreement. The prefunded warrants shall be void if closing of the transaction does not occur by March 31, 2023.