Annual report pursuant to Section 13 and 15(d)

PREPAID EXPENSES AND OTHER CURRENT ASSETS AND LAND DEPOSIT (Tables)

v3.22.4
PREPAID EXPENSES AND OTHER CURRENT ASSETS AND LAND DEPOSIT (Tables)
 12 Months Ended
Dec. 31, 2022
Prepaid Expenses And Other Current Assets And Land Deposit  
SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT ASSETS

 

    December 31, 2022     December 31, 2021  
Deposits   $ 12,000     $ 32,000  
Legal retainer     24,457       33,692  
Prepaid expenses     436,496       214,445  
Deferred offering costs     100,337       -  
Others     25,052       28,903  
Prepaid expenses, other current assets   $ 598,342     $ 309,040  

 

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:

 

  (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 695,866 prefunded warrants on September 9, 2022 to Stronghold.
     
  (iii) A second stock deposit $1,100,000 in prefunded warrants. The Company issued 450,266 prefunded warrants on September 9, 2022 to Stronghold.

 

At December 31, 2022 the $2,085,960 of prefunded warrants were recorded under land deposit in relation to the Stronghold agreement. The prefunded warrant issuance may be rescinded and the warrants null and void if Stronghold does not meet all escrow performance conditions by March 31, 2023.