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

Quarterly report pursuant to Section 13 or 15(d)

LEASES

LEASES

9 Months Ended

Sep. 30, 2023

13. LEASES

The Company entered an operating lease for office space. As at September 30, 2023, the remaining lease term is six years and the discount rate is 7.0%. The Company has no finance leases.

The components of lease expenses were as follows:

SCHEDULE OF LEASE EXPENSES

	Nine months ended September 30, 2023		Nine months ended September 30, 2022
Operating lease cost	$	219,018	$	226,098
Short-term lease cost		3,517		12,630
Total lease expenses	$	222,535	$	238,728

The minimum future annual payments under the lease for our continuing operations as at September 30 is as follows:

SCHEDULE OF FUTURE PAYMENTS UNDER LEASE


Remaining 2023	$	68,896
2024		280,907
2025		296,876
2026		296,876
2027		296,876
Subsequent years		519,533
Total minimum lease payments		1,759,964
Less: imputed interest		(361,688	)
Total lease liability		1,398,276
Current portion of lease liability		(275,584	)
Non-current portion of lease liability	$	1,122,692

On November 1, 2023, the Company terminated its operating lease of its office space and entered in to a short-term lease.