AgriFORCE Growing Systems Ltd. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

PREPAID EXPENSES, OTHER CURRENT ASSETS AND LAND DEPOSIT

PREPAID EXPENSES, OTHER CURRENT ASSETS AND LAND DEPOSIT

9 Months Ended

Sep. 30, 2023

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

	September 30, 2023		December 31, 2022
Prepaid expenses	$	169,448	$	436,496
Legal retainer		30,811		24,457
Inventory advances		36,107		-
Deferred offering costs		-		100,337
Deposits		-		12,000
Others		5,667		25,052
	$	242,033	$	598,342

The Company wrote off a non-refundable deposit amounting to $12,000 which was related to a previous land purchase agreement.

Inventory advances represent payments made to manufacturers for goods not received.

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 to have Stronghold complete certain permitting, zoning, and infrastructure work for a total purchase price of $4,300,000. The purchase price consists of:

	(i)	$1,500,000 in cash due on March 31, 2023.

	(ii)	A first stock deposit of $1,700,000 in prefunded warrants. The Company issued 13,917 prefunded warrants on September 9, 2022 to Stronghold.

	(iii)	A second stock deposit $1,100,000 in prefunded warrants. The Company issued 9,005 prefunded warrants on September 9, 2022 to Stronghold.

As at December 31, 2022 the $2,085,960 of prefunded warrants were recorded under land deposit in relation to the Stronghold agreement.

On March 31, 2023 the prefunded warrants issued were rescinded and the warrants were rendered null and void as the Company presented a termination notice to Stronghold and the value under land deposit was also reversed.